Fed Has to Take Notice of an Inverted Yield Curve, BTIG's Liss Says

The video discusses the anticipation of Friday's jobs report and the yield curve inversion, focusing on the Fed's response to these economic indicators. Hallie List from BTG provides insights into the market's reaction to the yield curve inversion, particularly the two-year and five-year portions. The discussion highlights the Fed's historical stance on yield curve inversions and the potential implications for future recessions. Despite strong employment and manufacturing data, the market is favoring fewer rate hikes due to inflation remaining below the Fed's target. The Fed may pause rate hikes if inflation trends downward.

What is the current inflation rate and how does it relate to the Federal Reserve's target?

What implications does a potential negative inflation rate have for the Federal Reserve's future actions?