Polarized Politics Makes Path of U.S. Deficit a Worry, UBS Says

The video discusses global inflation trends, noting that current inflation levels are around long-term averages. It explores the impact of service sector inflation and goods deflation, highlighting the role of rising wages in the US. The discussion shifts to the Federal Reserve's challenges with political factors affecting rate hikes. Finally, concerns about the US deficit and debt trajectory are addressed, emphasizing the impact of polarized politics on economic decisions.

What does the term 'hedonic adjustment' refer to in the context of inflation?

What concerns are raised about the US deficit in the text?