https://finance.yahoo.com/news/u-yields-resurgent-inflation-expectations-171038508.html
On Wednesday long-maturity bond yields increased heavily, driving inflation expectations to about 2.5% for the next five years. This is important because the Federal Reserve aims for a maximum of 2% inflation per year, and going over that expectation leads to uneasiness with investors of the US dollar.
This inflation hike is most likely due to the recent increase in oil prices, as well as the UK announcing that it will be selling more bonds than expected, as it deals with its own recession. This is important because foreign investment makes up about 25% of US debt and all countries are dealing with recessions, which could lead to more countries selling off their US debts.
- Mason Meiring #5
No comments:
Post a Comment