The yield curve (10y minus 2y) or (10y minus 90 day) or whatever they want to use.....gets way too much visibility to function as a timely indicator for the economy. The Fed stupidity curve is much better......2y minus the Fed funds rate (I think T. McClellan uses the same). When that curve inverts, we're talking gross incompetence with the Fed trying to directly target the economy. But we've already seen Greenspan do it back in 2000 & 2001, and the King himself.....Bernanke did it in 2006 & 2007. As they say....it shouldn't be that hard. Except when there's no brain cells in the room at the Fed. The Bernanke episode was some of the inspiration for the famous Cramer rant.....They know nothing!! And he was right. If Powell eventually drives this economy into the ditch......it's close to hopeless if they can't get rid of the Fed.
Yield curve
Started by
LMF
, Sep 26 2018 06:40 PM
2 replies to this topic