In this segment, the host from The Art of Crypto explains that the Federal Reserve historically cuts interest rates 12–18 months after a yield‑curve inversion. He notes that the most recent inversion occurred about a year ago and that such inversions have reliably foreshadowed every recession since the Great Depression. Based on this historical pattern, he argues that a Fed rate cut is likely to occur within the next five to seven months.
Now, historically speaking, the Federal Reserve tends to cut rates between a period of 12 to 18 months after every yield inversion curve. We got the yield inversion curve roughly 12 months ago. So historically speaking, like, this yield inversion curve has managed to predict basically every recession dating back to the Great Depression. So it's not really something that you can argue with, and the theory and the logic behind it is very sound. So this is also pointing to the fact that a rate cut will happen anytime within the next 5 to 7 months.
