Fund manager says Trump pressure on the Fed may lead to a steeper U.S. yield curve

The U.S. Treasury yield curve is steeping as the Trump administration puts pressure on the Fed and investors demand higher compensation for fiscal and political risks. Long-term yields face upward pressure from sustained deficits and large bond issuances, while short-term yields reflect market expectations for a substantial rate cut. Fund managers see private credit as an attractive alternative, with investment opportunities in secondary markets, infrastructure and real estate.