Although inflation showed signs of cooling off, it is still at sky-high levels, and the Fed is expected to stay put with its interest rate hikes, raising concerns of a recession. Moreover, the Treasury yield curve inverted to -29.7 basis points earlier this week, signaling that recession bets have increased.
“The inverted yield curve is signaling a massive ‘recession’ is upon us,” said Tom di Galoma, managing director at Seaport Global Holdings, in a note to investors. “Yield curve inversions are great predictors of recessions.”
