$$What does a downward sloping yield curve portend for the economy and what is the fundamental reasoning behind it$?$

Where short$-$terms yields are greater than long$-$term$-$ yields, that$$s where an $$inverted shape for the yield curve is and is when the descends downward. When investors believe that is possible and more likely that the upcoming policy interest rates are going to decrease and will be lower than the actual policy interest rate, then that$$s when the inverted yield curve is observed. Downward sloping yield has been related throughout history with leading and preceding an economy contraction. For the reason that central banks lower policy rates as a way to acknowledge the low economy growth and inflation, and so in that case investors may accurately forecast will happen.