counterpart for the first time since 2007. The inversion was monumental because similar occurrences have preceded every recession since 1955 — and this one came just as investors were fretting about global growth and interest-rate cuts.
It's admittedly a small sample size, but Kolanovic finds sufficient similarities between present-day monetary policy and what prevailed during those episodes. Specifically, inversions tend to happen because theis raising interest rates. And as of right now, the market is still digesting the four that occurred last year and debating whether the central bank went too far.