As The Federal Reserve battles inflation (caused by excessive monetary stimulus since 2008), Biden’s green energy policies and excess Federal government spending), we can see that the US Treasury 10yr-2yr yield curve has inverted to -54.4 basis points, the lowest since 1982 after Fed Chair Paul Volcker’s war on inflation.
The US Treasury 10yr-2yr yield curve typically inverts (or goes below zero) several months prior to a recession and is most inverted since 1982.
Fed Funds futures data points to the target rate rising to 4.613% by the May ’23 FOMC meeting … then declining.
Since this is rather miserable news for the economy, I will now play my favorite Bruce Springsteen tune, Sherry Darling.
At least the Dow Jones mini-me futures are up this morning.
The US Dollar/Euro cross currency is rising with Fed tightening.