Feds Likely To Intervene With Interest Cuts To Prevent Recession
Recently, the bond market of the US gave warning that the country would face recession in the upcoming future, as well as the Fed, would cut the interest rates to curb it. While speaking to the press Andrew Brenner stated that citizens of the country have started to fear about their financial stability. Mr. Brenner also said that though the present situation will pass away it’s the recession which could harm the growth of the country.
After the US bond market foretells a warning against upcoming recession both, the stock and bond market received disconnection between them. Some of the analysts also relate the present situation at a global level, since 10-year-old bund of Germany fell by 0.03%. In the US, most of the analysts are predicting a staggering cut of 25 points from the Federal Reserve during the present year.
Back on March 22, 2019, the bond market was shocked when they recorded an inverted yield curve, which gives direct vindication that recession is looming over the country. In an exclusive interview with the press, Jon Hill said that the present situation gives obvious vindication that the bond rates will go down in the upcoming future. Mr. Hill further said that the market situation on Monday has nothing to do much with the recession.
In a press conference, Charles Evans made reporters aware that the Fed can loosen as well as hold a policy. On March 27, 2019, the Fed had released a thorough report, which discusses that there will be no hike in the rate.
During a press meet, Mark Cabana said that most of the analysts have predicted that the government can easily avoid recession during the present fiscal year. Mr. Cabana further said that the present situation of the market is because of several factors like trade war with China and the overall world economy. Mr. Cabana further said that with the increase in the recession probability investors will become more cautious for the future investments. Mr. Brenner said that the bond market is trying to brace for the debt of $350 billion in terms of bills as well as notes.