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easytimes - Tue, 27 Dec 05 :



something most analysts will say in the coming days :

Previous inversions have typically signaled a slowing economy or recession, and debate has raged over what an inverted curve means in the current environment of robust growth and relatively subdued inflation.

"This clearly suggests we are very close to the end of the tightening cycle ... and is not an indication of a recession," Michael Rottmann, strategist at Hypovereinsbank, told Reuters.

"I think the Fed will raise interest rates by another 25 basis points to 4.50 percent which will be the peak for this cycle," he said.


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