The worst is yet to come
Be ready: the worst is yet to come. Financial markets are flashing a key warning sign of a recession, and the global economy is weakening as the U.S.-China trade war intensifies. All of which is heightening fear about the U.S. economy and about whether the Trump winning streak is nearing an end. On Wednesday, a rare realignment in interest rates intensified those worries. The yield on the benchmark 10-year U.S. Treasury note briefly fell below the yield on the 2-year Treasury for the first time since 2007. Normally, investors earn higher interest on longer-term bonds than on short-term ones. Put another way, the government will usually pay more to investors who are willing to lend their money for longer periods. So when that equation reverses itself — when longer-term Treasurys pay less than shorter-term ones — economists call it an “inverted yield curve.” An inverted curve suggests that bond investors expect growth to slow so much that the Federal Reserve will soon feel ...