- Long-term yields may have more of an inflation premium but Fed will fix that
- US deficits may also be driving long-term yields higher
- Some of ongoing services price inflation may represent lagged wage increases, which should ease
- Tremendous uncertainty around what will happen with tariffs
- Do not think ‘draconian’ tariffs will be implemented
- In the near-term do not think there will be a huge impact on inflation from tariffs
This article was written by Adam Button at www.forexlive.com.
