“Inversion in interest rates is not a media creation, and nothing to sneeze at. “
No, it’s a Fed Reserve creation. The Fed kept the rate high while other countries set their’s to near zero or even negative. So investors in those countries purchase US Treasuries driving the yield down and, now “signaling recession”.
If/when the Fed cuts rates in Sept and October the bond purchases will subside and yield will increase reversing the ‘recession signal’. This is why Trump is brow beating the Fed for keeping interest rates high while the rest of the world is near zero. It causes them to buy US treasuries, lowering the yields and pushing the stock market to selloff. Hence some ppl referring to it as a manufactured crisis.
I saw Denmark at zero the other day and thought that very weird.
Bravo for the explanation here. I heard someone on Fox Biz explain it early this a.m. but you summed it up very well. :-)
I hope there is another cut. I am looking to refinance the home mortgage balance AND cut the term without increasing the payment. Fingers crossed.