Should Stocks Fear Curve Dis-Inversion? Ask James Carville

Economists will tell you to fear the inversion. Traders will tell you to fear the re-steepening. I'm talking about the yield curve, of course, which is currently at risk of registering its first ever false alarm vis-à-vis recession "predictions." The rationale for fearing the re-steepening is straightforward: If the curve's bull steepening, short rates are probably responding to rate cuts (or falling in anticipation of rate cuts), and rate cuts are indicative of monetary policy reacting to re