When they (likely) increase the fed rate by 25-50 bps in Wed., it will represent the first time that this has occurred while the yield curve is inverted. This means that banks will not be motivated to lend due the inversion -and- what does get lent will occur at higher rates thus putting two forms of additional pressure on market liquidity.
When they (likely) increase the fed rate by 25-50 bps in Wed., it will represent the first time that this has occurred while the yield curve is inverted. This means that banks will not be motivated to lend due the inversion -and- what does get lent will occur at higher rates thus putting two forms of additional pressure on market liquidity.