BNP Paribas' Morris Expects Four Fed Rate Hikes in 2018

The video discusses the rising demand for T-bills and its impact on Treasury yields, suggesting that yields may decrease by year-end. It examines the implications of potential Fed rate hikes, driven by economic growth and inflation concerns. The discussion highlights the balance between inflation expectations and market reactions, noting that while inflation is rising, the risk of it accelerating beyond 3% remains low.

Discuss the implications of the budget deficit on Treasury issuance and global demand.

What concerns arise from inflation potentially rising above 3%?