It would engender a loss of confidence if the yield curve got really steep, that the Fed was insolvent on a mark - to - market basis — that could lead to a loss of confidence in the dollar. (alephblog.com)
You lose confidence in the dollar and you want to get out of the dollar, at which point you're like «okay you can pay me in dollars, but I'm going to buy land, fine art, gold, silver, that's when velocity accelerates almost of nowhere, and inflation takes off. (businessinsider.com)
Allowing the Federal Reserve to restore confidence in the dollar (and thus raise interest rates and reestablish the discipline of the Taylor rule) by cutting taxes, perhaps the corporate rate. (firstthings.com)