Trump Fed Bashing.

• Position: OFF THE NEWS

President Donald Trump has begun a period of Oval Office criticism of the Federal Reserve's monetary policy. The president's reasons for this new round of Fed bashing are not yet clear. But the best bet is that his advisers have explained the dangers of an inverted yield curve in the event long-term interest rates, as the Fed raises short-term rates, fail to rise correspondingly.

The difference between two-year and ten-year U.S. Treasury notes is roughly 0.3 percentage points. The last time it hit those levels was 2007, when...