Amid the recent financial market volatility, the interest rates on some long-dat...
WASHINGTON - Amid the recent financial market volatility, the interest rates on some long-dated government bonds have fallen below the level for short-term debt.
Called a “yield curve inversion,” this has been a traditional warning sign for the economy: If smart investors see more risk two years ahead than 10 years down the road, it can’t be good for near-term growth. He was off by a few months, expecting a yield curve inversion late in 2018, but Bullard as well as Dallas Fed President Robert Kaplan flagged early on what might happen if the Fed continued to hike, as it did throughout last year.Aug. 20, 2018: “I pledge to you I will not vote for anything that will knowingly invert the curve and I am hopeful that as we move forward I won’t be faced with that.” - Atlanta Federal Reserve President Raphael Bostic.
Williams was among the most vocal in saying that in the “new normal” economy, when all rates and the spreads between them were inherently lower, a yield curve inversion may be a product of structural changes in markets, and not the scary signal it used to be.Sept. 12, 2018: Lower overall rates and changing investor behavior “may temper somewhat the conclusions that we can draw from historical yield curve relationships.” - Fed Governor Lael Brainard.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Trump tweets on Fed, China amid market's fallPresident Trump blamed the Federal Reserve for Wednesday's Dow plunge of 800 points, calling Fed Chairman Jerome Powell 'clueless' in an afternoon tweet. The panel discusses Trump's tweeting and the market drop.
Baca lebih lajut »
Fed not on red-alert after yield-curve inversionThe Federal Reserve will not switch into recession fighting mode, meaning swift interest rate cuts, even though the main measure of the yield curve inverted...
Baca lebih lajut »
U.S. yield curve inversion highlights recession fears, Fed dilemmaWhen the U.S. Federal Reserve cut interest rates last month for the first time i...
Baca lebih lajut »
Fed Poised To React Swiftly To Persistent Yield Curve Inversion, With More Rate CutsGlobal stocks markets slumped sharply on Wednesday and kept tumbling Thursday without much in the way of immediately negatively headlines, with one exception—something funky was happening in another, even more important sector of finance: bonds.
Baca lebih lajut »
Fed Poised To React Swiftly To Persistent Yield Curve Inversion, With More Rate CutsGlobal stocks markets slumped sharply on Wednesday and kept tumbling Thursday without much in the way of immediately negatively headlines, with one exception—something funky was happening in another, even more important sector of finance: bonds.
Baca lebih lajut »