Negative: Federal Reserve's recession indicator worsens rapidly, reminiscent of 2008, due to economic slowdown fears.

From Yahoo Finance: 2025-04-04 07:08:00

The Federal Reserve’s recession indicator has worsened rapidly, reminiscent of 2008, due to fears of an economic slowdown from Trump’s tariffs. Metrics like the yield spread between Treasury bills are being closely watched by economists and investors. Fed Chair Powell prefers the spread between three-month T-bills and their expected yield in 18 months. The negative spread signals a potential recession, with JPMorgan raising the risk to 60%. Traders now predict deeper rate cuts by the Fed, causing banking stocks to plummet globally. Other central banks are also expected to slash rates multiple times. Investors are concerned as Trump’s tariff threats persist.



Read more at Yahoo Finance: One of the Fed’s top recession alarms sends 2008-style signal