Exacerbating recession fears, Trump diverts blame to Fed for 'CRAZY INVERTED YIELD CURVE!'

(Image credit: Mark Wilson/Getty Images)

published 14 August 2019

The president has weighed in on the possibly, but maybe not actually ominous inverted yield curve.

President Trump isn't a fan of the "crazy" inversion, but unlike many of his critics who have placed America's trade war with China front and center when it comes to reasons why a global recession might be looming, he's pointing to a different problem — and it's not one of the items on Nobel Prize-winning economist Paul Krugman's smorgasbord of economic issues, either.

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Many economists don't agree with Trump. Krugman, for instance, doesn't place sole responsibility for the global economy's teetering on the trade war, but he does consider it a factor. Meanwhile, The Washington Post also reports that the trade war, often through indirect effects like a decline in business confidence and investment, has played a major role in the slowdown. Considering markets closed with their biggest point declines of the year soon after his tweet, it's clear Trump didn't do much to mollify spooked investors.

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Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.

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