Yield curve flattening and inversion

The podcast discusses the flattening yield curve and the potential inversion, which is seen as a signal of a recession. The guests highlight the historical track record of the yield curve in predicting recessions. They discuss the factors contributing to the current flattening, including quantitative tightening and supply and demand dynamics. While the guests acknowledge the predictive power of the yield curve, they emphasize the importance of considering other market factors and the potential impact of the Federal Reserve's actions in determining the future path of interest rates.