Professor Who Created Recession Indicator Says Fed Went Too Far With Rate Hikes, Risking Economic Downturn
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The Fed overestimated inflation and went too far with rate hikes, Duke professor Campbell Harvey said.
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He created the inverted yield curve, a famous recession indicator.
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Now the curve is uninverting, which happened before the last 4 recessions, he told CNBC.
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The way the curve is uninverting now signals a downturn - long rates are rising.
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This increases borrowing costs and makes investment difficult, harming the economy.