Three Things to Watch for With a Flattening Yield Curve

The video discusses the implications of an inverted yield curve, often seen as a recession predictor. It explores factors affecting the yield curve, such as the Fed's balance sheet and Treasury issuance. The San Francisco Fed's perspective on yield curve flattening is analyzed, emphasizing the recession risk. The video concludes with potential Fed actions in response to yield curve changes, highlighting the importance of monitoring economic indicators.

What role does the Federal Reserve play in relation to the yield curve?

What are the potential consequences of an inverted yield curve for the economy?