November 21, 2005

Even though the U.S. economy has been on an impressive run, the pundits are concerned that the bond market may be signaling trouble ahead. The Fed’s “measured response” has produced twelve consecutive fed fund rate increases. In turn, that has closed the gap between short and long rates. If the trend continues, short rates may rise above the long rates producing an inverted yield curve. Some people believe that the flattening of the yield curve is the bond’s market way of saying that the Fed’s efforts to fight inflation could tip the economy into recession.

You must have an active account to view these reports. You may register for a trial here

Download Complete Report in PDF Format

Download Complete Report in Word Format