It was a huge mistake for the Federal Reserve to nearly i...

It was a huge mistake for the Federal Reserve to nearly invest the yield curve in 2007. In fact, I cannot think of any reason why a central bank with inflation not well above target would ever seek or tolerate such a near-inverted yield curve: Joe Rennison: Yield Curve Hits New Cycle Low in Wake of Fed Meeting: "The difference between two- and 10-year Treasury yields, a common permutation of the so-called yield curve, sank below 10 basis points for only the second time this year, and hit 9.87 basis points in morning trading on Thursday. It���s the lowest level for the measure since June 2007...

...An inverted yield curve���where short-dated Treasury yields rise above longer-dated ones���has preceded every US recession since the second world war. The drop comes after the Federal Reserve on Wednesday raised interest rates Wednesday and forecast a two (versus their previous forecast of three) rate increases for 2019.... The prospect of a slowdown in the economy also hit the US stock market as investors adjusted to the increased pressure on corporate profits...

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