Fed's Kashkari: Inverted yield curve is a concerning sign - RTRS

Federal Reserve's Kashkari has said that the single best indicator of recessions is the inverted yield curve.

More from Kashkari:

• The yield curve inverts because investors are nervous about future growth.
• The inverted yield curve is a concerning sign; I take the signal seriously.
• The US consumer is doing well, but businesses are reducing investments.
• If Fed were to grow balance sheet again, it would be aimed at smoothing operation of financial system.

FX implications: 

The markets are weighing the various negative inputs and the US Dollar is picking up a safe haven bid as the cleanest dirty shirt in the laundry basket. The markets have actually priced in around "15bp of easing at the 31 October meeting and a terminal rate of 0.94% (vs 1.88% currently)," according to analysts at Westpac.