- Fed Chair Jerome Powell warned of bigger interest-rate hikes to cool inflation and the economy.
- The yield on two-year Treasury notes touched 5.08%, its highest level since 2007.
- The spread between 2- and 10-year yields is larger than a percentage point for the first time since 1981.
- Fed hikes over the next four meetings are priced in.
- Fed Chair Powell is open to reverting to half-point rate hikes.
- US stocks extended the decline they’ve suffered over the past month.
- The dollar surged higher Tuesday, with a Bloomberg gauge rising to its highest level since early January.
Markets — Monetary Policy — Investment — Economics — Banking
Deepest Bond Yield Inversion Since Volcker Suggests Hard Landing
The bond market is doubling down on the prospect of a US recession after Federal Reserve Chair Jerome Powell warned of a return to bigger interest-rate hikes to cool inflation and the economy. US stocks extended the decline they’ve suffered over the past month, with the S&P 500 Index notching a 1.5%