More from Waller: Some of ongoing services inflation may represent lagged wage increases

• 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.