Financial news

Yield Curve is Inverted for Nearly 25 Years

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Via MishTalk

Yield Curve – Overnight Fed Funds Rate Through 30 Years

Click on chart to expand.

Synopsis

  • Using the Fed-Funds Rates as the zero-duration starting point, the yield curve is inverted for 99 quarters, nearly 25 years.
  • If we use the 3-month T-Bill as the starting point (2.105%), the yield curve is “only” inverted for 58 quarters, 14.5 years.

New Home Sales

On Tuesday, a Census Department housing report showed New Home Sales Plunge 35.9% in the West, 7.8% Overall, Prices Down 8.1%

Powell Bluff

Also on Tuesday, Powell Chastised Trump and Praised Himself in one of the most self-serving Fed speeches in history.

Specifically, in a blast pointed directly at Trump, Powell proclaimed “The Fed is insulated from short-term political pressures—what is often referred to as our ‘independence.”

What a hoot.

Uncle!

The Fed will cry uncle in July.

Expect at least one 25 basis point rate cut.

The market has a 100% chance of at least one cut.

Meanwhile – We Still Have Questions

Dear Jerome Powell, instead of patting yourself on the back and answering fluff prepared questions, how about addressing some real questions?

  • Let’s discuss the Fed’s economic models and their miserable performance.
  • Let’s discuss bubbles.
  • Let’s also debate the Fed’s inflation expectation theory. I can logically show the theory is nonsense.

Answers Please

Hello Jerome Powell, We Have Questions

Please have a go at it, Mr. Powell.

Mike “Mish” Shedlock




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