Citigroup Strategist Believes U.S. Yield Curve Steepens

The video discusses the steepening of the US curve due to rising deficits and potential exogenous events. It analyzes the likelihood of Fed rate hikes, considering strong CPI data and the impact of a stronger dollar. The discussion also covers the implications of higher deficits and tax cuts under the Trump administration, predicting increased treasury supply. Finally, it explores potential errors in economic predictions, emphasizing the role of sustained inflation and consumer spending.

What is the primary rationale for the steepening in the US curve?

How might exogenous events affect the Federal Reserve's decisions on rate hikes?

What were the expectations for rate hikes in the previous years compared to this year?

What impact could a stronger dollar have on the Federal Reserve's terminal rate?

What factors contribute to the expectation of higher deficits in the future?