Is the expectation of rate cuts paradoxically delaying rate cuts?

In the United States, the yield curve inverted as long-term interest rates fell below short-term rates2022 yearJuly since which it has become the longest24 consecutive months on record. The inverted yield curve is often cited as a sign of an impending recession, but the reality of the U.S. economy shows the unemployment rate near full employment4% or below, withGDP growth continuing to show resilience. We explain why the inverted yield curve persists in the United States and the impact it has on the USD/JPY exchange rate.