Discussion Paper

(Don't Fear) The Yield Curve, Reprise


Abstract: In recent months, financial market perceptions about the future path of short-term interest rates have evolved amidst signals from policymakers suggesting that reduced monetary policy accommodation is in the offing. As with previous episodes of policy tightening, most recently in 2018, one can hear an attendant rise in the volume of commentary about a decline in the slope of the yield curve and the risk of "inversion," whereby long-term yields fall below shorter-maturity yields.

https://doi.org/10.17016/2380-7172.3099

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2022-03-25

Number: 2022-03-25