Fed Close to Causing Yield Curve Inversion

Laughlin, Kate
December 2005
Investment Dealers' Digest;12/19/2005, Vol. 71 Issue 48, p13
Trade Publication
The article discusses issues related to U.S. Federal Reserve Board's 13th consecutive quarter-point hike of the federal funds rate to 4.25% last week. It is evident that the Federal Reserve will continue to raise interest rates, even though the economy appears to be showing signs of softness with an unemployment rate of 5% and an industrial sector operating at around 80% of capacity. According to John Lekas, a principal at Leader Capital Management, the yield curve is expected to invert by mid-2006.


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