The yeild curve is meaningless when you look at the current market, with gas, food, and housing doing what it is doing.
You're like Bernanke. You don't like the yield curve because it doesn't agree with your feelings. Like it or not, it is a market indicator that compares yields of securities at different maturities. An overnight loan should not carry an interest rate higher than a 30 year loan, or any loan of longer maturity. That's what the market says. If you don't agree with it, then you are for government intervention.
Like I said before, the Fed's credit cycle doesn't do anything to stop inflation.