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Fed will be key to preventing yield curve’s recession prophesy from coming true: investor

Sunny Oh
Fed will be key to preventing yield curve’s recession prophesy from coming true: investor

If the Federal Reserve wants to stop fearing the inverted yield curve as a recession bellwether, it should learn to stop its rate hikes before they tip above the long-term neutral rate. This also had the effect of lifting short-end Treasury yields close to their long-end counterparts, either making the yield curve very flat, or inverting it altogether.