US CPI Fuels Fed Wagers, US Inflation Comes In Cooler Than Expected | Real Yield 2/13/2025

• US economic data shows mixed signals with relatively contained inflation and stronger-than-expected job growth, leading traders to reprice rate cut expectations.
• Federal Reserve Governor Stephen Miran suggests tight monetary policy poses a risk to the economy, advocating for lower interest rates.
• The AI race is disrupting debt markets, with a significant increase in tech companies' share of private sector debt issuance, raising concerns about concentration risk in private credit.
• US companies are increasingly issuing bonds in European markets (reverse Yankee sales) to diversify funding and potentially achieve better pricing, with volumes surging past 2007 highs.
• Upcoming key economic data, particularly the PCE inflation report, will be crucial for investors to gauge the Fed's future policy decisions.

The video discusses the US economic landscape, highlighting mixed signals from inflation and job growth, leading to repricing of Fed rate cut expectations. It also covers the impact of the AI race on debt markets, the trend of US companies issuing bonds in Europe, and the outlook for various credit sectors. Experts offer differing views on the economy's resilience and the Fed's monetary policy path.