Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
What the Steep Yield Curve Is Telling the Fed
The yield curve is no longer inverted — it's steep, with the 10-year Treasury at 4.68% and short-term rates near 3.8%. Lucas and Luna unpack what this steepening means for the Fed's next move. With the unemployment rate dropping to 4.2% and GDP growth rebounding to 2.1%, the economy looks strong. But the bond market is demanding a higher term premium, possibly due to fiscal concerns. The hosts discuss how Fed watchers are interpreting Kevin Warsh's recent language and why the central bank may stay on hold despite the curve's signal. A focused look at the disconnect between…
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