Yield-Curve Inversion, Inflation, Fed: 3-Minute MLIV

The video discusses the potential for further yield curve inversion, with Bank of America predicting a shift to -85 basis points. The speaker anticipates more inversion, drawing parallels to the 70s and 80s stagflation. The Fed's need to hike rates into a recession to control inflation is highlighted. Market confusion is noted, with differing views on future treasury yields and CPI predictions. The volatility is expected to remain high due to data dependency, and the challenges of interpreting real versus nominal data in an inflationary environment are discussed.

What does the speaker expect regarding the yield curve in the next year?

How does the speaker view the relationship between rate hikes and recession?

What are the implications of the Fed's actions on the two-year and ten-year yields according to the speaker?

What concerns does the speaker express regarding economists' predictions about CPI?

What does the speaker think about the New York Fed's inflation expectations?