Parker: Despite the Yield Curve, the Sky Isn’t Falling

Trump, Strong Economy
President Trump speaks during a groundbreaking ceremony for the $10 billion Foxconn factory complex in Mt. Pleasant, Wis. Scott Olson/Getty Images

Elaine Parker of Job Creators Network writes in the Washington Times that the broad scope of economic indicators offset the concern that the inverted yield curve suggests a recession is imminent:

Over the past week, the mainstream media has devoted considerable airtime and page-space to highlight the so-called “inverted yield curve” — or a scenario in which earnings from short-term Treasury bonds surpass earnings of long-term ones. They argue this is proof of an imminent recession.

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To begin, it’s important to put the inverted yield curve into context. Yes, over the past four decades, an upside-down yield curve has seemingly preceded recessions. But there’s a catch. Inversions — or near inversions — also occur without economic downturn.

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In short, when considering a wider scope of economic indicators, it’s evident the U.S. economy is on solid footing and there’s little chance of an immediate nosedive. Some politicians and their supporters in the media will simply stop at nothing to explain away the strength of the U.S. economy for political gain.

Read the rest of the article here.

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