A Powerful Signal of Impending Recession Has Wall Street’s Attention

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Long and short term interest spread
A New York Times graphic

– News about elsewhere covered by Quincy Quarry News with commentary added.

 

A powerful signal of impending recession has Wall Street’s attention.

 

The bond market’s yield curve is perilously close to predicting a recession — something the yield curve has done with surprising accuracy over the years — and something which has become a big topic of concern on Wall Street. 

 

Specifically, the concern is that short term interest rates are going up while longer term rates are not.

 

Look out below!!!
A barrons.com graphic

Every recession that has occurred during the past 60 years has been preceded by an inverted yield curve – which means when short term rates are higher than longer term rate – according to research from the San Francisco Federal Reserve Bank.  

 

Yield curve inversions have “correctly signaled all nine recessions since 1955 and had only one false positive, in the mid-1960s, when an inversion was followed by an economic slowdown but not an official recession,” the San Francisco bank’s researchers wrote in March.

Read all about it and learn at: What’s the Yield Curve? ‘A Powerful Signal of Recessions’ Has Wall Street’s Attention

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