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based on the current treasury rates (yield curve) what is the future direction of the economy/...

based on the current treasury rates (yield curve) what is the future direction of the economy/ market?
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Answer #1

The current yield curve indicates that there is a possibility of the US Fed reducing the interest rates going forward. In the last three years or so, the Fed had increased interest rates owing to very good jobs data, higher inflation and higher expected GDP growth. Going forward, the increased trade tensions between US and China, and lower inflation is expected to lower the interest rate. Therefore the direction of the treasury rates is expected to be down going forward.

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