Reported 2 months ago
A significant drop in two-year Treasury yields below ten-year yields has reignited concerns about a potential recession in the US. This dynamic suggests that the Federal Reserve may need to swiftly cut interest rates, as current financial conditions appear too tight. Following a recent jobs report indicating a rise in unemployment, market indicators are predicting aggressive rate cuts, possibly beginning in September. Economists warn that delays in Fed action may signal worsening economic conditions, prompting discussions about the necessity for intervention.
Source: YAHOO