What Does the Inverting Yield Curve Mean?

What Does the Inverting Yield Curve Mean?

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Business

University

Hard

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The transcript discusses the nearing end of a long economic cycle and the implications of a flattening and inverting yield curve, which many interpret as a sign of an impending recession. The pressure on the dollar against low-yield currencies like the euro and yen is noted, along with the time lag between yield curve inversion and market peaks. While a recession is not predicted for 2019, the risk is expected to grow by 2021, signaling a slowdown in economic growth. Economists agree on the slowing growth, raising questions about the need to adjust asset return expectations for 2019.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the implications of the statement 'it signals a slowdown in the economy'?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What do economists generally expect regarding growth in the near future?

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