A chart called the “yield curve” has predicted every US recession over the last 50 years. Now it might be predicting another one.
Economic experts are starting to warn that a US recession is becoming more likely because of something called the “yield curve.” So what’s the yield curve? What does it show? And why is it bad if it “inverts?” We visualized the yield curve over the past four decades, to show why it’s so good at predicting recessions, and what it actually means when the curve changes.