The real economy isn’t doing well…
Inflation is still stubbornly high. And the interest rate that matters most isn’t cooperating…
The 10-year Treasury rate is the one that affects real-world interest rates the most. I’m talking about mortgage rates, credit-card interest rates, and the interest companies pay when they borrow. And its yield has increased from 3.6% to 4.3% since the Fed started cutting rates last September.
In other words, the Fed’s rate cuts haven’t yet changed the minds of bond investors. They still expect bad news.
Recently, many reliable recession indicators have flashed major warning signs. They’ve all said the same thing: We’re headed for a recession.
This post originally appeared at DailyWealth.