Tuesday's guest in AIM program, Jim Bianco, was on CNBC on Friday discussing the 10-year note. In this interview Jim Bianco noted that the 10-year yield is about 50 bps higher since Bernanke’s Jackson Hole speech on August 27. Over the same per period, inflation expectations are up by roughly the same amount. In other words, the Federal Reserve’s plan to lower interest rates via QE2 does not seem to be working as inflation fears are driving rates higher. View the interview below:
Dr. David Krause, AIM program director said, "We are looking forward to Jim Bianco's annual visit to the AIM program. He is one of the leading experts on Federal Reserve policy and current macro-economic conditions."