UBS's Yu Says Fed Is Not Yet at Escape Velocity

The video discusses the Federal Reserve's stance on growth and inflation, highlighting that while growth is stable, inflation remains uncertain. It examines the Fed's monetary policy, suggesting it is still too lenient given current economic conditions. The discussion extends to foreign exchange and bond markets, noting the linear rise in yields and the impact of a stronger dollar. Finally, it touches on US fiscal policy, suggesting a return to normal economic conditions as nominal GDP growth surpasses long-term yields.

In what ways does the strengthening of the dollar act as a stimulus for the global economy?

What does the normalization of yields indicate about the economic momentum?