Economics
White House Plays Down Yield Curve as U.S. Recession Indicator
- Administration weighs in on debate over yield-curve inversion
- Closely watched bond-market gauge may be signaling slowdown
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The White House on Wednesday downplayed signals in the Treasury market that some interpret as a sign of a looming recession, saying many U.S. economic indicators have strengthened.
Two-year Treasury yields surpassed 10-year ones on Tuesday, marking a so-called inversion of the yield curve, in the first such instance since 2019. Inverted yield curves have preceded most recessions in the past, and the latest move has ignited a debate among investors and economists over whether an economic slump is now in the offing.