Analyst: Expects Wash to Enhance Its Inflation-Fighting Image

July 27th, BlueBay's Chief Investment Officer Mark Dowding pointed out in a report that investors have every reason to believe that Fed Chair Powell would be inclined to make hawkish comments and do everything possible to bolster his anti-inflation reputation, although he is not yet ready to take any concrete action.

He stated: "This could prompt a further flattening of the U.S. yield curve in the short term." However, Dowding also noted that given the continued deterioration of the U.S. fiscal situation and Trump's escalating spending on the Middle East conflict, these factors may eventually cause the yield curve to steepen again at some point in the future.