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Fed Might Slow After All, Bank Reports Just Okay

publication date: Jan 15, 2019
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Image shown: The yield curve is flattening. Source: Federal Reserve Bank, St. Louis.

The biggest question with Fed policy is whether the FOMC will purposefully cause an inversion in the yield curve. If it thinks the market is manipulating long rates to influence its policy, it may very well go forward with rate hikes. If it doesn't, it may very well slow the pace of rate hikes or even pause them. The behavioral implications of a yield-curve inversion may be more significant than the inversion, itself, however.

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