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Caroline Baum: Using level of long-term rates to assess financial conditions is a mistake


Right now, the inverted yield curve points to an increased risk of recession, while various financial conditions indexes say conditions are easy. The Fed risks misinterpreting financial conditions from long rates. Financial conditions are all the rage among central bankers. And for good reason. Monetary policy involves setting a short-term

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Posted: July 17, 2019 Wednesday 08:45 AM