What the yield curve is signaling about the US economy

Today, we saw a nice pop in equities on the back of a dovish Fed and falling interest rates. Equities moved to new highs as a result. But, clearly, falling yields are a sign of economic distress that one might think would cause equity investors to run for cover. What gives?

Here's my answer.

The Fed's forward guidance

I am going to start with the Fed here,…