The Best Illustration of Fed's Inflation Relations With Markets

  • Yield curve flattened after hot inflation data in the morning
  • Curve steepens after Fed cools to signs of faster inflation

If you want one chart that sums up what happened Wednesday -- from the hotter-than-expected inflation data released in the morning to the surprisingly cautious tone Federal Reserve Chair Janet Yellen struck in the afternoon -- look no further than the U.S. yield curve.

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