I'm concerned that we will get higher inflation expectations, but that in actuality, inflation will remain low.

Yields are moving higher in a response to an economy that is bouncing back. Inflation is still under control, but it's in the upper end of the Fed's comfort range.

At this point, I believe inflation and inflation expectations will be largely contained by competitive market forces and continuing adjustments to the stance of monetary policy,

After two or three months of inflation numbers coming in above expectations you start to revise inflation expectations upward, which puts pressure on domestic interest rates.

The implication is that the economy is strengthening, but that inflation is not substantial, and the Fed will be able to handle it if it should become so.

The main enemy Morales faces is the inflation of expectations. People have a lot of hopes, a lot of expectations. But some are expecting miracles in the short term.