The Chart That Predicts Recessions

The ‘Inverted Yield Curve’ has predicted every recession over the past 50 years. What is it and why are financial experts worried?

Economic experts are starting to warn that a US recession is becoming more likely because of something called the “yield curve.” So what’s the yield curve? What does it show? And why is it bad if it “inverts?” We visualized the yield curve over the past four decades, to show why it’s so good at predicting recessions, and what it actually means when the curve changes.

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