Because of the current state of the economy and future predictions, the country’s interest rate yield curve is inverted. This means that for short term government bonds, interest rates are higher, and for long term bonds the interest rates are lower. The main reason for this inversion is that the economy has slowed, and the predictions lead to the Fed cutting interest rates in the future. When the country is experiencing inflation, the yield curve is opposite, as the Fed would tighten, and interest rates would go up in the future. I felt that this was an interesting issue to write about because the yield curve is a very simple graph, but is an important economic indicator that can say a lot about the state of a country’s economy. -Omar Zamir
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