'Crazy inverted yield curve' vexes Fed, with no clear resolution

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Amid the recent financial market volatility, the interest rates on some long-dat...

WASHINGTON - Amid the recent financial market volatility, the interest rates on some long-dated government bonds have fallen below the level for short-term debt.

Called a “yield curve inversion,” this has been a traditional warning sign for the economy: If smart investors see more risk two years ahead than 10 years down the road, it can’t be good for near-term growth. He was off by a few months, expecting a yield curve inversion late in 2018, but Bullard as well as Dallas Fed President Robert Kaplan flagged early on what might happen if the Fed continued to hike, as it did throughout last year.Aug. 20, 2018: “I pledge to you I will not vote for anything that will knowingly invert the curve and I am hopeful that as we move forward I won’t be faced with that.” - Atlanta Federal Reserve President Raphael Bostic.

Williams was among the most vocal in saying that in the “new normal” economy, when all rates and the spreads between them were inherently lower, a yield curve inversion may be a product of structural changes in markets, and not the scary signal it used to be.Sept. 12, 2018: Lower overall rates and changing investor behavior “may temper somewhat the conclusions that we can draw from historical yield curve relationships.” - Fed Governor Lael Brainard.

 

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Maybe finally 'spreading the wealth', is the answer. Minimum wage doesnt pay for all of the products they want us to buy.

Isn’t there a causal relation between the rate cut and the IYC? didn’t it happen because of the rate cut?

The Fed reserve doesn't work for Americans, it works for a select few very wealthy elite

Go, Fed go! the rescuer of undecided people.

'But Trump said it wouldn't do this?'

the crazy inverted yield curve seems to model triump's trajectory.............

Sounds like I lost monies today

Michael Scott doing stock photography now?

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