The Next Great Debate at the Fed Will Be All About the 'Monetary Offset'

The checks and balances imposed on President-elect Donald Trump's new economic agenda won't just come from Capitol Hill, but also from the Marriner S. Eccles Federal Reserve Board Buildings farther west on Constitution Avenue.

The real-estate mogul is believed to be prepping a massive fiscal expansion featuring tax cuts and an infrastructure spending binge, potentially funded by debt, at a time when the U.S. unemployment rate has fallen to levels historically consistent with full employment. This points to pricing pressures picking up steam as these expenditures arrive — and as such, bond yields have risen, with markets betting that Trump will be the inflation president.