Fed wants lower rates to defend against Congressional bankruptcy

In the past, including before the Great Recession of 2007-2009, an inverted yield curve, where long-term interest rates fall below their short-term counterparts, has been a reliable predictor of recessions.  

The bond market is not there yet, but a sharp recent flattening of the yield curve has many in the markets watchful and concerned.The US yield curve is now at its flattest in about 10 years — in other words, since around the time a major credit crunch of was gaining steam. The gap between two-year note yields and their 10-year counterparts has shrunk to just 0.63 percentage point, the narrowest since November 2007.... 

Philadelphia Fed President Patrick Harker appeared to corroborate the BofA analysts' assumption in an interview with Bloomberg TV earlier this week: "I am concerned" about the flattening of the yield curve, he said.

Let us not kid ourselves.  Patrick is basically a liar.  

He really means that Congressional deficits are a national catastrophe and Congress is about to send us to recession. Goldman-Sachs says 2018 is a great year, but that is cartel code which really means we cannot hold the ten year down in 2018 and housing will crash.