US recession warning as 'Powell's curve' hits new lows.

1 min read
Source: Reuters
US recession warning as 'Powell's curve' hits new lows.
Photo: Reuters
TL;DR Summary

The Federal Reserve's preferred bond market signal of an upcoming recession has plunged to fresh lows, standing at nearly minus 170 basis points on Thursday. The spread, which has been in negative territory since November, is the most reliable bond market signal of an imminent economic contraction. The curve inversion, known as "Powell's curve," has been plunging to fresh century lows, bolstering the case for those who believe the central bank will soon need to cut rates in order to revive economic activity.

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