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The Federal Reserve's favorite recession indicator is flashing a danger sign again

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Summary
Nutrition label

86% Informative

The 10-year Treasury yield passed below that of the 3-month note in trading Wednesday .

The previous inversion happened in October 2022 , and there's still been no recession 2 years later .

While there's no certainty that growth will turn negative this time around, investors worry that expected growth from an ambitious agenda under President Donald Trump may not happen.

The yield curve inversion "is a pure play on the economy being not as strong as people thought it was going to be at the beginning of the Trump administration," he said. "Whether or not we're forecasting a full-blown recession, I don't know. You need job losses for a recession, so we're missing one key point of the data.".

VR Score

92

Informative language

94

Neutral language

60

Article tone

informal

Language

English

Language complexity

46

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not offensive

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not hateful

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not detected

Time-value

short-lived

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