Posted on 07/11/2022 7:37:10 AM PDT by Browns Ultra Fan
The US economy is slippin’ into darkness.
The US Treasury 10Y-2Y yield curve steepened after Biden’s inauguration as President, a sign of economic optimism. Then reality began to dawn when inflation began to surge (blue line). Then The Fed stepped in to combat inflation by signaling an increase in their target rate (green line). The result? The 10Y-2Y Treasury curve is inverted at -4.85 BPS, generally an indicator of an impending recession.
But never fear! The Feral Reserve is expected to reverse its rate increases by March 2023.
So, it looks like The Fed will be returning to its “low rider” rate policies in early 2023.
In other words, hold on, The Fed is coming. Again.
(Excerpt) Read more at confoundedinterest.net ...
Fantastic song....horrible economy.
In time for the 2024 elections. Increased interest rates cause debt servicing costs to soar. We are already paying $340 billion a year now.
There’s a lot more to this than the Fed increasing interest rates. The major problem with our economy is there has been zero change to fiscal policy. That’s a Democrat and RINO led Congress and Brandon eff’n everything they touch, spending money that does not exist. The Fed cannot change fiscal policy. Their meat clever only works on monetary policy. I’m not siding with Fed by any means. For having more data, more economists and supposedly greater focus that anyone in the world, they are late to action and don’t give a damn about everyday Americans. They are dishonest economic mental midgets.
Let the name of the Fed be praised as they put us through the Job experience. Just like they did in 2008. And 2000.
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