The Federal Reserve's mandate leads or lags?

Quoting failinforex

Disliked

{image} Powell's respond - The yield curve is flattening in response to the Fed tightening. You would expect that. It is not that much a concern. But some economists stated that it is a telltale sign of recession. What is your opinion on this Master Yoda?

Ignored

Quoting COGSx86

Disliked

What we should really be looking at is where 3 month t-bills go. Once the 3 month t-bills start a decline with double tops and a increase with this 10 yr-2yr spread. Thats when it should raise concern. What do you notice when the 10 year minus 2 year starts to increase, after trending lower, hmmm?

Ignored

Quoting COGSx86

Disliked

{quote}
Bonds operate opposite to stocks. Bonds price will go up when less people are buying them. The government is trying to make the yields more appealing, by increasing the yield. When yields increase investors will be more likely to place money in bonds instead of, for example, the stock market.

Say you're starting a company and need investment capital, how would you attract investors? You would offer them a higher rate, lets say 10%. Then you start to get investors pouring in. You would then drop the rate as investors see your business as sustainable, safe and profitable. More investors come into the mix, allowing yourself to reduce the yields, you pay, so now your offering 6%.

Government operates no differently.

A drop in bond prices, means more people are buying bonds or in this case, Banks. As more banks buy bonds they then have more capital on the books (paying 1$ for 1.03$ = more money). When banks have more capital on the books, they are able to lend out more money, from forex traders, to first time home buyers. As more money is in circulation the value of that money drops.

Ignored

Quoting COGSx86

Disliked

{quote} Follow Bonds, a trader must. US10 or 30Y, the holy grail of USDJPY, this is. {image}

Ignored