logicalsinger

Fed Delivers a Steep Yield Curve: A Bull’s Best Friend

It is USUALLY true that a steep yield curve is a bullish signal, but USUALLY the Fed does not lower short-term rates while inflation is making new highs. This time it is different (!) because the Fed has ignored inflation which is running at 7 to 8% and has cut rates to save the financial system. The result will likely be that inflation will accelerate and long-term yields will rise to higher levels. And we all know high inflation is bad news stock returns, especially in real terms.