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The medium-to-long-term prognosis with respect to US inflation is murkier.
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But with global debt issuance still extremely elevated, we anticipate further weakness in long-end bonds and steeper yield curves.
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If inflation does come down as quickly as central banks predict, it'll be because they get really lucky.
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Time will tell whether inflation continues its recent downtrend into the latter half of 2023 or whether the Fed will need to eventually resume its policy tightening.
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Coupled with expansive fiscal policies, this is likely to result in steeper yield curves.