ECN135 The Yield Curve discussion

Read the above article about the “yield curve” and discuss the following. The article mentions that the yield curve often flattens when the Fed raises short-term interest rates. Does that match what we know about liquidity premium theory? Assuming that the yield curve does flatten when the Fed raises short-term interest rates, should the Fed never raise short-term interest rates? What are the pros and cons of that policy?

Your response must be 400 to 600 words