An inverted yield curve often serves as an early warning of a looming recession because it suggests monetary policy and financial conditions are constraining the economy. The 10-year Treasury note's yield fell 5.7 basis points at 1.619 percent, according to FactSet; the 2-year yield dropped 4.1 basis points at 1.628 percent. Such an inversion has preceded the last seven recessions. "The equity market is on borrowed time after the yield curve inverts," Bank of America Merrill Lynch strategists wrote. U.S. stock index futures dropped sharply after the inversion, CNBC reports. Harold Maass
Senate Majority Leader Mitch McConnell (R-Ky.) admitted Thursday that he could very well be Senate minority leader after the November elections. "I may or may not be calling the shots next year," McConnell told a civic group in Louisville. Right now, McConnell said, the Republican Party's chances at maintaining Senate control are "very dicey."
McConnell avoided naming any names — not even Donald Trump's. With 24 GOP seats and just 10 Democratic seats on the ballot this year, McConnell said it was inevitable Republicans would be "on defense," regardless of who the party's presidential nominee was.
However, McConnell did add that he really hopes Trump "settles down and follows the script." Becca Stanek