U.S. Bond Markets Not Pricing-In Enough Inflation, Says Newton Investment's Brain

The video discusses the current market expectations regarding inflation, highlighting insights from the Saint Louis Fed President James Bullard. It explores the lag effect of inflation, factors contributing to potential inflation increases, and the impact of trade tariffs. The discussion also covers the implications of rising yields on equities and risk assets, emphasizing the trend of higher yields unless risk assets sell off.

What does the Saint Louis Fed President believe about future inflation?

• He does not see much inflation materializing.

• He expects significant inflation.

• He is uncertain about inflation trends.

• He believes inflation will decrease.

Which factor is NOT mentioned as contributing to potential inflation?

• Higher oil prices

• Technological advancements

• Trade tariffs

• Higher wage inflation

How might trade tariffs affect US inflation according to the discussion?

• They will stabilize inflation.

• They will contribute to higher costs.

• They will have no impact.

• They will significantly lower inflation.

What challenge is associated with full employment in the US?

• Finding employees at lower wages

• Increasing unemployment rates

• Filling gaps from imports at higher costs

• Decreasing domestic production

What is the relationship between risk assets and yield trends?

• Yields decrease when risk assets increase.

• Risk assets always increase yields.

• Risk asset sell-offs can contain yield rises.

• Risk assets have no effect on yields.