SPY - A Steeper Yield Curve Should Benefit Financial Stocks

In 2018, the Federal Reserve pursued an interest rate policy the led to the yield curve (10y/2y) inverting. This year, the Federal Reserve Bank has reduced the Fed Funds rate three times in response to a slowing economy that developed in 2018. The last 25-basis point rate cut occurred in October, and some now believe this may be the last cut of this cycle. Coinciding with the last cut was a paper released by the San Francisco Fed that discussed the economic growth benefit of pursuing a negative interest rate policy. One outcome of a

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