The US continues to teeter on the brink of economic turmoil

The U.S. economy is teetering on the brink of extreme turmoil, with several factors coming into play at the same time.

The financial markets are signaling recession. The U.S. Treasury Yield Curve is now inverted, meaning that “ short term interest rates are moving up, closer to (or higher than) long term interest rates. This has historically been a very reliable indicator of an upcoming economic recession. Since World War II every yield curve inversion has been followed by a recession in the following 6-18 months,” according to the Current Market Evaluation.

This is a reaction to the Federal Reserve raising interest rates to combat inflation, which typically leads to a recession and higher unemployment.

U.S. markets widely “expect the rate-setting Federal Open Market Committee to step down to a 0.5 percentage point increase in December, following four straight 0.75 percentage point hikes. The central bank’s next interest rate decision is December 14,” said CNBC. If the Fed raises the interest rate again, it will mark the seventh hike this year alone.