The big economic questions
Beyond Markets
00:00
Is There a Recession in the US?
The US Treasury yield curve is currently inverted meaning that short term rates are higher than long term rates. Traditionally this is an indicator that a recession is on the way does that mean it's now actually a false friend? Well first of all it's a signal that central banks are overdoing it so financial markets have their price have their interest rates and this is usually the one with a longer duration which is made on the market. When there is a disconnect between these two either the central banks knows it better in this case and I think interest rates should be higher than what the financial market thinks. And what about the risk of a recession in Europe? I think also short term and this has cleared
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