Bond yields were already in steep decline today on ISM news. Trump goosed the market with additional tariffs on China.
Fed Gets Unwanted Reaction
The Fed cut interest rates yesterday in hopes of steepening the yield curve. I noted Fed Gets Opposite Response It Wanted: Inversions Strengthen
Inversions continued to strengthen today on Manufacturing reports: ISM and Markit PMI On Verge of Contraction.
Even before Trump’s tariff announcement, I commented that “I Expect Contraction Next Month.” Click on the link for my reasons.
A global manufacturing recession has already started. Trump’s unwise move increases the odds of an economic recession soon, assuming it has not already started.
Mike “Mish” Shedlock