The Fed talks interest rates with an eye toward the yield curve

The Federal Open Market Committee begins its two-day meeting today to talk interest rates. The Fed is expected to raise its target rate by a quarter of a point for the second time this year. And with unemployment reaching a new low last month and inflation creeping up, analysts expect officials to keep raising rates throughout the year. If short-term yields keep rising, that could lead to what’s called an inverted yield curve, when short-term term rates are higher than long-term borrowing costs.

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