Longer term rates are affected by investors expectations of future inflation but I think investors buy into the central bankers' deception that inflation is low. Investors also think that by the Fed raising the short term rate that will weaken the economy going forward and that it will result in lower inflation. I personally don't buy it.
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Okay I see thanks for explaining. Because in the Investor's view, low short term rates bring about high future inflation where higher short term rates bring about higher inflation but what is actually happening now is a sort of deflation even with the low short term rates. So thats whay I cant understand how the FED can be raising rates with the current low inflation, but your video delves into that. Looking forward to the next video!