Why an indicator that has foretold almost every recession doesn't seem to be working anymore
Publishing timestamp: 2024-07-24 15:26:58
Summary
Wall Street's favorite recession signal, the inverted yield curve, has been flashing red since 2022 but has been wrong so far. Despite the signal, there is no recession in sight for the U.S. economy. Various economic indicators are showing reasons for caution, but no recession has appeared yet. The Federal Reserve's rate dynamics have helped companies avoid the negative effects of the inverted curve, but the situation could change if prevailing high rates persist. Fed's actions in the near future could determine whether the inverted curve will finally signal a recession.
Sentiment: MIXED
Tickers: US10Y,
Keywords: business news, economy, markets, recessions and depressions, u.s. 10 year treasury,