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The bond market is sounding the alarm bells for a potential U.S. economic slowdown, as President Donald Trump‘s tumultuous tariff policies and federal workforce cuts threaten to further hinder growth.
What Happened: Investors have been pouring money into short-dated Treasuries, leading to a significant dip in the two-year yield since mid-February.
This move is a response to the anticipation that the Federal Reserve may begin to slash interest rates as early as May to ward off further economic deterioration, reports Bloomberg.
“Just a few weeks ago we were fielding questions about whether we think the US economy’s re-accelerating —- and now all of a sudden the R word is being brought up repeatedly,” Gennadiy Goldberg, head of US …
