Nathan Sheets, PGIM Fixed Income chief economist, visited with CNBC to provide his thoughts on the economy and Federal Reserve policy, particularly the Treasury yield curve.
Points discussed:
- The flatness of the 10-year Treasury yield curve is getting the Fed pause
- Factors holding down long end of the yield curve
- Fed is taking out duration in the market
- There is more worry in the bond market
- A lot of manmade/policy-induced uncertainties
- Economy has significant momentum–pace of investment is growing
- Trade wars create a lot of uncertainties and could be disruptive for the economy
- Tariffs put upward pressure on prices
Related: Bond Markets Watching How Trade Disputes Impact Rates
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