People are fearful of inverted curves because it means the market is pricing in a predicted recession. Of course, that does not mean that a recession WILL happe

People are fearful of inverted curves because it means the market is pricing in a predicted recession. Of course, that does not mean that a recession WILL happen, just that it's the current market expectation. During recession scenarios, the Fed cuts interest rates to facilitate borrowing and inject more capital into the economy. So a lower 5yr rate means the market is expecting a more aggressive monetary policy in 2023