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The FED yield curve is showing the short–term rates of 5.3%; the 10-year rate of 4.9%; and the 30-year rate of 4.3%. As...

The FED yield curve is showing the short–term rates of 5.3%; the 10-year rate of 4.9%; and the 30-year rate of 4.3%. As a strategist for your company, what would you be telling your executive team?

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We see that the yield curve is downward sloping or inverted as long term rates are less than short term rates. This is a bad sign for the economy and it might be indicative of recession.

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