A big news item since this spring was that the U.S. government bond yield curve had inverted. An inverted yield curve is when short-term yields are higher than long-term yields and it is one of the closely watched indicators of upcoming slowing growth or a recession. In the last few weeks the yield curve has reverted back to a traditional yield curve where short-term rates are lower than long-term rates. So that economic concern has been taken off the table (at least for now). And many recent economic indicators have been solid. Third-quarter GDP came in at 1.9%. That was a little slower than the 2.0% from the second quarter, but it was better than expected. It's not robust growth, but still solid. CNBC
This year, central banks and governments around the world have been pushing policies to stimulate growth, just like when the Federal Reserve cut rates again last week. So for all the hand wringing earlier this year amid talk of a severe global slowdown and a potential recession, it didn’t happen. And based on the recent indicators, it doesn't appear it will happen in the near future. This is not to say that everything is rosy. We still have trade issues, gridlock in DC, and flat business spending, but moderate growth seems to be where this economy is settling in right now.
This week there are a couple more articles on the health of the economy. For some interesting and fun stuff, there are articles on aging wine in space, the global fertility crash, artificial intelligence, bringing New England mills back to economic life, and how oatmeal can power your athletic performance!
Thank you for reading The Friday Buzz, have a great weekend!
The Economy is Still Creating Jobs: The U.S. Labor Department reported jobs expanded by 128,000 workers, despite 42,000 autoworkers being on strike. That is good news for consumer confidence and spending. WSJ