Lesson from History - Earnings: T, BCE, RCI.B, SJR.B, BRE
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There appears to be nothing in the way of central banks increasing interest rates, except history.
Since the mid 1970's, until Janet Yellen's tenure, every time a central banker raised interest rates, creating an inverted yield curve, it was followed by a substantially greater decline to get markets back on track. An inverted yield curve is when short term interest rates rise above long term rates.
Yellen's tenure has been cut short; she has initiated the interest rate increase phase, but will not be around to see it go full cycle. It is now in Jerome Powell's court to continue or not. Economic comments this week focus on the outlook for US monetary policy under the incoming central bank leader whose data driven approach could vary from historical precedent.
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