Yield Curve Inversion is Waving Red Flag to Fed, Cathie Wood Warns
On Wednesday morning, The U.S. Treasury yield curve recently inverted to a point that hadn’t occurred since the early 1980s.
Ark Invest's Cathie Wood took to Twitter on Wednesday to slam the Fed for leading the economy potentially into a recession with its inflation focus, ignoring that the inverted yield curve is often seen as a red flag that a recession is looming.
"Typically, an inverted yield curve is pointing to a recession and/or lower than inflation than expected," Wood said. And she saw deflation as a "much bigger" risk than inflation.
This was not the first time Cathie Wood publicly accused the Fed of "making mistakes", in the second Monday of October, Cathie Wood issued an open letter to the Fed,suggesting the central bank “has shocked not just the US but the world and raised the risks of a deflationary bust.” She also said that the Fed should be taking lessons from commodity prices that indicate the biggest economic risk going forward is deflation, not inflation.
Mooers, leave your comments in the comment section, do you think Cathie Wood's accusation makes sense? And do you think the bigger risk for the US is inflation or deflation?
Source: moomoo, Twitter
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The Random Investor : This is When the Stock Market Will Bottom
intuitive Jackal_354 : Cathy wood is an idiot, watch her YouTube videos and you'll see she's f*cking nut
GabbieM : lol . Auntie Cathie again...
71730265 : She just wants cheap money so her 2nd grade strategy of buying the highs might work. She is no better than SBF
lightfoot : True, this is a major warning. Biden is terrorizing this nation to avoid investigation and prosecution. Why is he even President. it is pure insanity, A weakness I have never seen.
amusing Python_8524 intuitive Jackal_354: Oh, the fed is actually intent on shrinking this economy and anyone who doesn’t’ see it is a complete moron.
lightfoot : Most experts including CEO diamond are giving us warning. My 7.5 decades confirms these statistics and impact will destroy our nation in the hands of the complicit
lightfoot : Be ready to downsize your portfolio's is the only way to protect your investments. Stop Orders are useless.
MCGOOZLE : Quit market and wait til bullish.. got it.
lightfoot : We have signs galore pointing to a full blown recession. Ronald Reagan came into office with the same set of economic downplay. ×We need strong leadership to steer this ship into safe waters. Biden, Harris are useless
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