In the current circumstance, one argument is that the Fed overreacted in raising short-term rates, making those rates artificially high. I suppose there is some

In the current circumstance, one argument is that the Fed overreacted in raising short-term rates, making those rates artificially high. I suppose there is some support for this without looking too deeply into it as the Fed now is unwinding QE. Unwinding QE still is "tightening" monetary policy. My guess is that the Fed believes that by lowering its portfolio's duration is a more effective way to raise longer-term yields to prevent the yield curve from becoming more inverted. I'm not a monetary expert, but I suppose you could say this time is different due to QE/QT, or you could stick with how the market typically reacts after the yield curve inverts.