Inverted Yield Curve December 7, 2018

Many analysts on Wall Street have been anticipating an inversion of the U.S. Treasury yield curve e.g. short-term rates exceed long-term rates. Commonly understood to be an indicator that the economy is heading for a slowdown, the influence of recent changes in Federal Reserve policy including three increases to the overnight lending rates must be taken into consideration. The inversion is the market’s expectation for inflation and economic outlook for the near term.