Surveillance: Bank Earnings with Leon
Bloomberg Surveillance
00:00
The Risk of a Deepening in the Yield Curve Inversion
Yield curve inversion would be a re-inversion down to near record lows or at least post-1981. The Fed thinks about setting interest rates through the real rate. A 5% Fed funds rate is different when inflation's running at 4%. So what we see the market pricing in and part of the real reason behind that yield Curve inversion is the strong confidence in the market that the Fed's going to get this back down to 2%.
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