“What really triggered it was some commentary that Powell made during the press conference where he said that the balance sheet run-off would be ‘in the background.’ Those three words, in the background, he repeated several times and they’re akin to what Janet Yellen originally said the balance sheet running off would be like watching paint dry.
The yield curve, or the difference between a long-maturity Treasury bond yield and a short-maturity yield, signifies economic strength.