Sunday, September 8, 2019
Powell and the Fed on not expecting an upcoming recession
Federal Reserve Chairman Jerome Powell elaborates on the threat of a potential recession following an under-performing yield of the 10-year Treasury note, leading to an inverted yield curve in the bond market. Powell believes that the central bank's decision on lowering interest rates has helped prevent the recession from occurring by sustaining economic growth within the United States. Despite criticisms, representatives like Esther George and and Powell believe that the US is in a strong position and should not fear an upcoming recession.
Powell says the Fed is not forecasting or expecting a recession
Esther George says the Fed’s ‘large balance sheet’ may have helped cause the yield curve inversion
Subscribe to:
Post Comments (Atom)
Investment must increase if the U.S. doesn't want to fall into a recession. Hopefully the lowering of these interest rates help influence investment in such a way.
ReplyDeleteI agree with this, With such a strong dollar currently, we must invest in ourselves to continue pumping our economy. But, we can only pump in so much cash before inflation becomes an issue. Very tricky situation at the moment.
DeleteWhile the relatively low investment could be a possible cause of an almost "eminent" 2020 recession. One factor that overshadows most is our goal of a protectionist trade policy.
DeleteWe are in a good position, for now. All other indicators look incredible and are not pointing to a recession. That being said, we are in trouble and the rate cut was used too early. We will enter a recession around the time of the 2020 election if not early into the next presidency.
ReplyDelete