Does This Inverted Yield Curve Mean a Reession Is Coming?
Posted on Tuesday, April 5, 2022 at 5:12 PM
Dan Passarelli, CEO - Market Taker Mentoring
The treasury yield curve inverted recently and came back to normal. Typically, when there is an inverted yield curve, it signals a recession that usually comes 12 to 24 months later. Does this inverted yield curve mean a recession is coming?
Dan Passarelli says, "no, it's different this time." The reason is the yield curve inversion is a result of COVID, the Fed's treasury purchases in the past, and the expected tapering and selling of treasury inventory. These fundamental forces do not fit the mold of the typical boom and bust cycles we often see.
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