Hatheway: Trump Means Fast Adjustment to Higher Rates

The video discusses the rise in interest rates due to economic factors like borrowing and fiscal stimulus. It highlights a reflationary trend with bond yields increasing since Brexit, driven by global growth and a shift from monetary to fiscal policy. The Trump victory amplifies this trend, suggesting a large fiscal package with tax cuts and infrastructure spending. The market environment is changing, with fears of deflation diminishing and inflation rising. The video concludes with an analysis of the implications for investors and the potential for higher yields.

Discuss the potential impact of tax cuts and increased spending on the economy.

In what ways have bond yields changed in response to recent economic developments?