Sentences with phrase «effect flattens the yield»

Not exact matches

And so the yield curve could possibly approach inversion, but it may or may not occur or stay there very long because at that stage of the game, the flattening of the yield curve will greatly intensify all the other effects — the reduction in the reserve, monetary, and credit aggregates, as well as the weakness in velocity.

«The multi-year massive expansion of the Fed's balance sheet has had a recognized powerful effect on asset markets — lowering yields and flattening the yield curve.

But when the yield curve starts flattening, that intensifies the effect of the monetary tightening because it takes away or, at the very least, greatly reduces the profitability of the banks and all those that act like banks.

After that, there is no effect, so far, except to say that the yield curve is already flattening, and that the Fed my end up stopping much sooner than many expect — including the FOMC and their «dot plot» which expects a 2 % + Fed funds rate in 2017, and 3 % + in 2018.