Fed keeps wary eye on yield curve

WASHINGTON: Inversion of a key part of the yield curve has caught the attention of some at the Federal Reserve (Fed), but officials show no sign of ditching plans to keep raising interest rates to get inflation under control.

The United States two-year yield briefly exceeded the 10-year on Tuesday for the first time since 2019, inverting yet another segment of the Treasury curve and reinforcing the view that rate hikes may cause a recession.