Posted on 08/23/2019 5:00:31 AM PDT by Moonman62
St. Louis Federal Reserve President James Bullard said Friday the central bank should continue to ease monetary policy because of the recession signal being flashed by the bond market.
“The yield curve is inverted here. We’ve got one of the higher rates on the yield curve here. That’s not a good place to be,” Bullard told CNBC’s Steve Liesman.
The so-called yield-curve inversion refers to the 10-year Treasury yield trading below its 2-year counterpart. This briefly happened earlier this week and last week. Experts fear a yield-curve inversion because it has historically preceded a recession.
(Excerpt) Read more at cnbc.com ...
Let us hope the economy mimics our President, in that it’s stronger than their relentless attacks.
I do believe a rate cut will happen.
We need to get short term rates down to what the market would charge. I think one percent would be correct.
The so-called yield-curve inversion refers to the 10-year Treasury yield trading below its 2-year counterpart. This briefly happened earlier this week and last week. Experts fear a yield-curve inversion because it has historically preceded a recession.
...
A flat yield curve isn’t good either.
We shouldn’t allow the elites to manipulate interest rates and our economy.
Rates should be determined by the market.
The “inverted yield” happened briefly! Now all the idiots in the media are crowing “Recession.” They really are stupid.
They would be very happy to be able to say “recession” a million times between now and the election. Even if it’s a lie.
Of course everyone knows about the video of The President before Congress....which requested his expertise.....many, many years ago. I will post it....as soon as I find it again.
let us ignore every other cause of the inversion and go straight to recessions, that occur all the time... and besides, aren’t recessions suppose to be worse than depressions? and the depression was called that to spin it better than the correction it was?
why can’t americans ever get the truth these days.
According to Ric Edelman (with a financial show on WBZ radio in Boston) says that the "inverted yield" predicted 14 of the last 8 recessions. So he's not worried about it.
I wasn't really listening to the more serious analysis, just caught the simplified quip at the end.
Economy needs demand side expansion for healthy growth. Which means more business hiring and starting new ones. Which requires healthy currency, low inflation, low regulations, low taxes, etc.
Printing cheap money has not worked so well for the Third Reich, Zimbabwe, Argentina, and others, even Roman empire tried it and failed.
All of these institutions have destroyed themselves supporting the 0bama Administration. The Fed did it to themselves by pumping a $Trillion a year into the economy to prevent 0bama’s economy from doing a face plant. Their policy requires they suck that cash back in but now they can’t because any rate hike will be overtly “AntiTrump” and open them to well deserved criticism for being partisan in favor of the Rats. They chose a side and it turned out to be the wrong one, just like the FBI, DOJ, CIA, IRS, EPA, etc., & etc.
“The Truth is out there...” but anyone looking for it in The Brown Shirt Media will have a very difficult time.
increase the rate of growth of the money supply + lower interest rates + tax cuts + cut regulations + easy credit = no recession
Looking at this animation of the yield curve it should be obvious that the inversion is due to the Fed manipulating short term rates:
https://stockcharts.com/freecharts/yieldcurve.php
Click animate.
wow... more evidence in that showing that the economy is stronger than anything the fed or communists can throw at it...
14 out of the last 8? and he’s a financial guy... sheesh... sounds like a rice delman to me...
It takes time but eventually the Fed’s manipulation puts the economy in recession.
but market forces can out last the fed manipulation... hopefully.
Bmfl
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