Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why the Yield Curve Is Steepening While the Fed Holds Firm
On this episode of The Macro Memo, Lucas and Luna dig into a striking market signal: the ten-year Treasury yield has climbed to 4.74 percent while the two-year sits at 3.68, a steepening curve that usually suggests investors expect growth and inflation to pick up. But the Fed, led by Kevin Warsh, is holding rates steady at 3.63 percent, and core inflation is running at 3.3 percent. How do we square a steepening curve with a cautious Fed? The hosts walk through what the curve is really saying about term premiums, fiscal deficits, and the risk of a policy mistake. They also touch on the latest…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.