When Federal Reserve Chair Jerome Powell testifies on Capitol Hill this week, investors will be looking for clues as to how issues like escalating trade tensions could alter the U.S. economy and therefore the Fed’s interest rate path.
Investors have also been watching another metric: the yield curve, which is flattening, with the gap between yields on the 10 and two-year U.S. Treasury bonds hitting a fresh 11-year low. Could this be the bond market sounding the alarm on the economy?
