Wall Street's favorite recession indicator is flashing yellow — but that may be about to change

The flattening of the yield curve, a bond market pattern that often portends recessions, has been a concern for some investors and Federal Reserve officials. Lisa Hornby, a fixed-income portfolio manager at Schroder's, tells us the Fed's unwinding of its balance sheet will help blunt the recent flattening. "At 50 basis points, there's plenty of steepness still," JPMorgan's chief investment officer for fixed income, Nicholas Gartside, argues. Investors and Federal Reserve officials...