Decoding the US flashing danger signals.

Financial markets are flashing danger signals about the path Washington and the Fed are on now, reflecting the weakened ability of the Fed to fight inflation. The 10-Year Treasury is at 3.4%, and gold price hovers above $2000. The 5-year credit default swap has increased rapidly since June 2022. The flashing danger signals suggest that the present path Washington and the Fed are on increased the chances of bringing the US to the edge of the precipice. The solution would be to reduce government spending and regulatory burdens to relieve the pressure on the Fed and on financial markets as well as dependence on foreign capital.