Yield Curve Will Invert Again: Morgan Stanley's Hornbach

The video discusses the implications of a strong CPI report, highlighting the need for higher real yields to curb inflation. It explores the flattening of the yield curve and potential inversion, with insights into corporate behavior changes due to inflation in the US and Japan. The Fed's policy response, including rate hikes, is analyzed alongside market expectations and the potential for future rate cuts. The role of central banks in managing inflation and its impact on market valuations is also examined.

What is the significance of the Fed's policy response to inflation?

How do central banks' actions impact real interest rates and market valuations?