Fed Should 'Un-Invert' Treasury Yield Curve: UBS WM's Tan

The video discusses the shift in market expectations regarding interest rate cuts, highlighting a move from a 50 basis point cut to a more likely 25 basis point cut due to strong economic indicators and a temporary US-China trade truce. It explores the Fed's dovish stance and the need for an insurance cut to sustain economic recovery. The discussion also covers strategies to manage the yield curve and policy rate to prevent recession and stabilize long-term expectations.

What are the potential risks mentioned if the Federal Reserve does not act preemptively?

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What is the proposed action regarding the yield curve and its implications?

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