ashliedanelle7998 ashliedanelle7998

09-04-2022
Business

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Why does an inverted yield curve serve as a predictor of a recession?.

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Heather11123 Heather11123

09-04-2022

An inverted curve reflects the bond market's expectation for the Fed to cut rates down the line. The Fed normally cuts rates in response to an economic downturn, hence why an inverted curve could be a recession signal.

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