A Firebell in the Morning...

Lesson one of central banking: yield curve inversion should only be allowed when the central bank wants to push inflation down. So what does the Fed think it's doing? Is it that confident that the bond market does not know what it is doing? Show me any optimal control exercise that says that right now is a good time to allow yield curve inversion: Vildana Hajric and Sarah Ponczek: Stock Market Today: Dow, S&P Live Updates for March 22, 2019: "U.S. equities fell and Treasuries rose after miserable data from the German manufacturing sector.... The yield on 10-year Treasuries, already at a more-than-one-year low, extended its decline. The three-year/10-year yield curve inverted for the first time since 2007...

#noted