Fed Poised To React Swiftly To Persistent Yield Curve Inversion, With More Rate Cuts

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The Fed is poised to react swiftly to persistent yield curve inversion, with more rate cuts

Federal Reserve Bank of St. Louis

What we do know is that Federal Reserve officials are not likely to hesitate when it comes to reacting to this particular phenomenon, even if central bankers find themselves in a tricky position. They actually set short-term rates, so technically by lowering them the Fed could exacerbate the inversion.

 

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pdacosta Even if the yield curve inversion is followed by a recession, it might not happen right away. Previous downturns show yields typically invert about 18 months before a recession. On the upside, that may mean just in time for the 2020 election.😁

pdacosta Trump knew his economy thriving on the Obama policies and that bubble was set to burst soon. That is why he has been attacking the Fed lately. He will use them as a scapegoat.

Powell trying to help trump get re-elected. But, in a bad way !

That's fucking stupid. The fed is letting itself be influenced by a president.

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