After the Fed resolution, the yield curve steepened: the 2-year yield fell 4 basis points, while the 30-year yield jumped to 5.21%. The short end is saying it won’t raise rates soon, while the long end is saying inflation hasn’t been kept under control. Yardeni’s assessment is very straightforward— the Fed needs to first hike the short end before the long end can come down. Warsh himself doesn’t mind. He said the market has already tightened financial conditions for him over this period, which actually gives him some «comfort».