Fed Signals Impending Recession with Rate Cuts and Forecasts.

The yield curve, which is Federal Reserve Chairman Jerome Powell's favorite bond market gauge, has inverted, signaling a possible recession for the US economy this year and a potential interest rate cut. Every recession in the past 60 years was preceded by an inverted yield curve, according to research from the Federal Reserve Bank of San Francisco. The inversion came just one day after the Fed delivered another quarter-percentage point rate hike, lifting the benchmark funds rate to a range of 4.75% to 5%, the highest since 2007. However, many investors are skeptical and believe that lagging economic growth could force the Fed to reduce rates before next year.