Katy Lied  by Steely Dan

The fourth album of Steely Dan will come at a time when the founding members of the group, Donald Fagen and Walter Becker, decide to stop live performances and focus only on studio recordings. Thus, the 1975 Katy Lied is recorded with session musicians that the two of them strictly select, as Jeff Baxter (guitar) and Jim Hodder (drums) have left the band because they disagree with this decision. Two of these musicians are the legendary drummer Jeff Porcaro and David Paich on keyboards. Both would later become members of Toto.

Katy Lied moves away from the jazz influence present in the previous works of Steely Dan and moves closer to the pop/rock version that Steely Dan had anyway. In several compositions, there is also a quite intense blues mood. For the production of the album, Steely Dan insists on Gary Katz. The album's title is derived from its cover as it depicts a katydid, and Steely Dan wants to make a pun with this word.

In both the U.S.A. and the United Kingdom, Katy Lied peaked at No.13 and did not enter the Top-10 the year it was released.