Former Fed Chair Janet Yellen is not convinced that the inverted yield curve is signaling a recession this time around, but fear won out. | Source: REUTERS/Jonathan Ernst
By CCN Markets: While Jerome Powell remains in the hot seat, a former Fed Chair insists that things are not that bad from where she sits. Janet Yellen, who was in Powell’s spot from 2014-2018, visited Fox Business where she said that the inverted yield curve, which has everyone in a tizzy about a recession, could be wrong. Investors clearly weren’t listening, sending the Dow Jones to its worst performance year-to-date. Yellen stated:
“Historically it’s been a pretty good signal of recession, and I think that’s why markets pay attention to it. But I would really urge that on this occasion it may be a less good signal.”
Recession Fears Grip Investors
Nonetheless, fear of a recession gripped investors today, sending all three major indices sharply lower. As one of the worst performers in the S&P 500, Macy’s shed a whopping 13 percent of its value as a perfect storm of shoddy earnings results, a potential recession, and a U.S./China trade war sank the stock.
Recession or not, Macy’s is struggling to remain relevant, particularly with the millennial generation. They have many other trendy shops to choose from, such as Lululemon, which incidentally is based in Canada and therefore a safer bet at the moment. Macy’s, which has been fiercely chopping its prices to no avail, also must contend with pure discount retailers such as TJMaxx, which are able to sell all of the clothing that Macy’s couldn’t offload in a firesale.