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Strategies & Market Trends : US Inflation and What To Do About It -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (1196)	10/13/2019 12:17:09 PM
From: RetiredNow	Respond to of 1504

Could be. This recovery has been the worst ever. But the yield curve does have some embedded information. Banks borrow short to lend long, so a flat or inverted curve puts the hurt on banks big time. Then when it un-inverts and steepens after an inversion, that is usually when the Fed is taking action like lowering interest rates and doing QE, which is what is happening now. Since the Fed is 100% of the time behind the curve, it means they are seeing something that makes them think a recession is coming and they are taking action to avert one. Of course, that's not what they tell us, but if you watch their actions, they speak louder than words.