Will Trump tax cut be a short term impediment to end this cycle?Will the Trump tax cut be a short term impediment for the yield curve to invert? Based on this chart and some logic... Yes, it will. The previous Fed rate hikes and quantitative tightening has made some pressures to short maturity bond yield go up almost as long maturity bond yields but on the other hand, the US state deficit has increased because of the less current tax receipts based on the Trump tax cut.
In other to sustain the US state level, the US government must borrow more money and this ultimately IMHO will lead to a more flexible duration of different spread bonds, increasing, therefore, the duration of the current economic cycle. This process is notorious in the combination based only on free market participants of the 10-30Y Yield Curve as the current state is steepening.