The US Yield Curve May Normalize Through Bear Steepening, Signaling a Potential Shift in Economic Conditions on Nostr: US Treasury Yield Curve Signals Recession for Longest Time on Record, Despite Ongoing ...
US Treasury Yield Curve Signals Recession for Longest Time on Record, Despite Ongoing Economic Growth
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#202ec731 ver:0.31
The US Treasury yield curve has been inverted for a record-breaking 624 days, signaling a potential recession. However, the economy continues to perform well, thanks to high consumer savings and the Federal Reserve's actions to stabilize the banking sector. While the inversion is a cause for concern, other factors are currently outweighing its impact. The prolonged inversion echoes patterns seen before stock market crashes, raising concerns about a potential stock market crash. The Federal Reserve expects inflation to decline and has kept its outlook unchanged for three interest rate cuts this year. Some market watchers have abandoned the yield curve indicator as a predictor of recession, but others remain proponents of it. Despite the prolonged inversion, investors should be skeptical of claims that a new bull market has begun and that a recession won't occur. The US yield curve is shifting, with long-term yields rising and short-term yields remaining unchanged, possibly due to disappointment with the Federal Reserve, concerns about inflation, and worries about the fiscal stability of the US government. The yield curve may normalize this year through a bear steepening, leading to a normal yield curve. However, this does not mean the economy has dodged a recession, as the timing of a downturn after inversion varies. The possibility of a recession happening eventually is still being debated. Investors are watching for spending plans of US political parties as the November election approaches....
#newstr #UsTreasuryYieldCurve #Recession #UsEconomy #FederalReserve #BearSteepening #UsDebt #Inflation #InterestRates
https://here.news/story/202ec731?ver=0.31
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#202ec731 ver:0.31
The US Treasury yield curve has been inverted for a record-breaking 624 days, signaling a potential recession. However, the economy continues to perform well, thanks to high consumer savings and the Federal Reserve's actions to stabilize the banking sector. While the inversion is a cause for concern, other factors are currently outweighing its impact. The prolonged inversion echoes patterns seen before stock market crashes, raising concerns about a potential stock market crash. The Federal Reserve expects inflation to decline and has kept its outlook unchanged for three interest rate cuts this year. Some market watchers have abandoned the yield curve indicator as a predictor of recession, but others remain proponents of it. Despite the prolonged inversion, investors should be skeptical of claims that a new bull market has begun and that a recession won't occur. The US yield curve is shifting, with long-term yields rising and short-term yields remaining unchanged, possibly due to disappointment with the Federal Reserve, concerns about inflation, and worries about the fiscal stability of the US government. The yield curve may normalize this year through a bear steepening, leading to a normal yield curve. However, this does not mean the economy has dodged a recession, as the timing of a downturn after inversion varies. The possibility of a recession happening eventually is still being debated. Investors are watching for spending plans of US political parties as the November election approaches....
#newstr #UsTreasuryYieldCurve #Recession #UsEconomy #FederalReserve #BearSteepening #UsDebt #Inflation #InterestRates
https://here.news/story/202ec731?ver=0.31