Economic outlook for credit unions (Image: Shutterstock).

There is a lot of uncertainty – and even panic – behind the current inverted yield curve, because an inverted yield curve has preceded every recession over the past 50 years (source: Financial Times). But this time our nation may not even be headed for a recession at all.

An inverted curve comes when interest rates for long-term bonds trade at a lower yield than short-term bonds. In March, the curve inverted for the first time since 2007, according to Forbes. Since then, the curve has been flat or dipped slightly back into the negative.

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