Amid Signs Of Weakness, Fed Reverses Course; Stocks Rally

In May, uniformly positive economic fundamentals turned mixed over fears of a two-front trade-war.

So the Federal Reserve abruptly reversed its policy on interest rates and it propelled a rally in stocks this past week. 

Amid all the crosscurrents, here are the facts.

The yield curve inverted on May 14th, and, because inversions have preceded every recession since 1954, it made investors nervous.

The yield curve is the difference between the rate at which the Fed lends to banks and the rate on a 10-year U.S. Treasury bond. 

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