people talk a lot about yield curves we have seen Peak curve inversion the curve can steepen did the curve get steeper no it’s a graph that shows interest rates on US Government debt that mature in a few years to many decades so why are we talking about it now well the curve has started to resume what has historically been its normal shape upward sloping that means investors want more yield to put their money in us treasuries for a decade compared to doing so for just a few years what makes is so key is that in 2022 when the FED began ratcheting up rates aggressively to rain in inflation short-term yields jumped and surpassed those on long-term treasuries this so-called yield curve inversion has preceded almost every recession since 1955 so that caused concern of a looming us downturn under the weight of fed monetary policy tightening and while that hasn’t happened yet many investors say there recession is likely coming they remember that back when the FED in the past started signaling or actually began cutting rates to support the economy that caus short-term yields to fall back below longer term ones and what’s dub disin verion or curve normalization the recession they say is typically not far off from that