as a result here is a tendency for interest rates t decline during during short-term rates decline more sharply than long-term rates because(1) the Fed operates mainly t the short-term sector, so the fed's intervention has the strongest effect(2) long-term rates reflect the average expected inflation rate over the next 20 to 30years and this expectation doesn't change much due to the level of current inflation so,short-term rates are volatile than long-term rates
Added by Janet S.
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