Yield Curve is Inverted for Nearly 25 Years
|Using the Fed Funds Rate as the baseline overnight duration, the yield curve is inverted for nearly 25 years.
Yield Curve - Overnight Fed Funds Rate Through 30 Years
Click on chart to expand.
Synopsis
- Using the Fed-Funds Rates as the zero-duration starting point, the yield curve is inverted for 99 quarters, nearly 25 years.
- If we use the 3-month T-Bill as the starting point (2.105%), the yield curve is "only" inverted for 58 quarters, 14.5 years.
New Home Sales
On Tuesday, a Census Department housing report showed New Home Sales Plunge 35.9% in the West, 7.8% Overall, Prices Down 8.1%
Powell Bluff
Also on Tuesday, Powell Chastised Trump and Praised Himself in one of the most self-serving Fed speeches in history.
Specifically, in a blast pointed directly at Trump, Powell proclaimed "The Fed is insulated from short-term political pressures—what is often referred to as our 'independence.''"
What a hoot.
Uncle!
The Fed will cry uncle in July.
Expect at least one 25 basis point rate cut.
The market has a 100% chance of at least one cut.
Meanwhile - We Still Have Questions
Dear Jerome Powell, instead of patting yourself on the back and answering fluff prepared questions, how about addressing some real questions?
- Let's discuss the Fed's economic models and their miserable performance.
- Let's discuss bubbles.
- Let's also debate the Fed's inflation expectation theory. I can logically show the theory is nonsense.
Answers Please
Hello Jerome Powell, We Have Questions
Please have a go at it, Mr. Powell.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.