US Bond Market Week in Review: No, the Yield Curve is Not Predicting Imminent Doom

            Who will be the next leader of the Federal Reserve?  This week we had conflicting news stories about the potential frontrunner.  But it seems we are now at the finalist stage, with Yellen and Taylor vying for the job.  Each comes with methodological baggage.  Yellen is too wedded to economic models which have falsely predicted 2% inflation (although recent reports indicated she is growing more flexible in her approach).  On the outside, Taylor, who loves to promote the Taylor Rule, appears far too rigid for an organization that operates on consensus.  Equally