QUESTION OF THE DAY: Is The Yield Curve A Totally Broken Indicator?

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We got a lot of pushback, via email, to our CHART OF THE DAY yesterday, citing JPMorgan strategist Thomas J. Lee, who argued that a recession was likely not imminent due to the ongoing steepness of the yield curve.

The response: This is now a nonsense indicator since the Fed has manipulated it as much as it has.

That seems legitimate, though we also would point out that the Fed’s so-called manipulation hasn’t worked out as expected, i.e. rates have generally risen during periods of QE.

Anyway, have at it in the comments, or your thoughts via email:[email protected].