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U.S. yield curve: Invert, steepen, repeat
A swift steepening of the U.S. 2-year/10-year yield curve after it inverted last week may have given investors hope that the United States can escape recession. They should probably take a breath. History indicates that the reprieve may be brief, before a more sustained, severe flip occurs. A catalyst for another inversion might happen later this week if the Federal Reserve’s minutes on its July 30-31 meeting on Wednesday or Fed Chairman Jerome Powell’s speech on Friday at the Jackson Hole economic conference were to suggest U.S. policy-makers are not fully on board for an all-out rate-cutting mode, which could ... (full story)