Currently the Federal Funds Rate is at 0 %.
The Yield Curve is close to flat around 0.5 %.
Inflation is at 7.5 %.
IF the FED raises the Federal Funds Rate 0.5 % then the Yield Curve will go negative and start a recession.
The FED cannot stop the current inflation without the yield curve going negative creating a major recession.
This means that stagflation is probably what is coming.
The Yield Curve is close to flat around 0.5 %.
Inflation is at 7.5 %.
IF the FED raises the Federal Funds Rate 0.5 % then the Yield Curve will go negative and start a recession.
The FED cannot stop the current inflation without the yield curve going negative creating a major recession.
This means that stagflation is probably what is coming.
