Latest / The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy
Why the Fed Is Watching the Inverted Yield Curve Again
The yield curve has been inverted for over two years — the longest stretch since the 1970s. This episode digs into why the Fed isn't ignoring it, even as many pundits have declared the yield curve 'broken' as a recession signal. Lucas and Luna walk through the mechanics of the 2-year versus 10-year Treasury spread, now at -74 basis points, and what it tells us about the market's expectations for rate cuts versus the Fed's actual stance. They also examine the 3-month to 10-year spread, which has flattened to just 12 basis points, and what that means for bank lending…
The skinny
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