Do you think the yield curve predicts economic performance or is the Fed’s QE ruining this metric?

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by AlexPitti

The yield curve is flattening as the difference between the 10 year treasury and 2 year yield is 44 basis points. That’s not enough to worry about a recession now, but some analysts are extrapolating continued flattening to predict a recession is coming in 1-2 years. The Fed is flattening the curve by raising rates which pushes the near term maturity yields higher. The long yields are staying relatively stagnant recently because economic growth is disappointing. Rate Hike Cycle To End In 2020?

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Weak Hard Data In Europe

 

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