The Treasury yield curve is flattening despite consensus expectations at the beginning of the year for steepening, and this flattening is a reliable indicator of tightening liquidity conditions that the Fed and Treasury do not want but cannot easily engineer differently because markets set interest rates.
factualpending
Speaker
Michael HowellEvidence Quote
“the Fed and the Treasury do not want a flattening curve. They want a steeper curve. But the question is that it's very difficult to engineer that with the sort of tools they've got.”
Source
Massive Liquidity Shock Coming; Brace For 'Wrecking Ball' Warns Economist | Michael Howell— David LinCreated: 8/12/2026, 6:46:58 PM
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