The Global Economy on the verge of recession: Investors are turning to the bond market By Investing.com

Investing.com – The bond market has indicated to investors that the likelihood of a mid- and medium-term recession is greater after reversing the US Treasury yield curve on Wednesday, which fears a recession in the USA.

Recessionary signals are becoming clearer in global markets, despite statements by former US Federal Reserve Chairman Janet Yellen that the US will not go into recession.

In an interview with "Fox News," Yellen said that the US economy is strong and has the ability to avoid the recession, pointing out that the decline in US bond yields, which has fears an economic slowdown and go into recession due to several factors, did not explain.

Nevertheless, Yellen said that the probability of an economic recession is clearly greater for everyone and higher than she had expected.

The 30-year US Treasury yield has fallen to its lowest level after fear and uncertainty about global economic growth after the Chinese government released weak and disappointing economic data.

US President Donald Trump has renewed his attack on the Fed by tweeting on his Twitter account, saying the Fed was too slow to change monetary policy and demanded that it react more quickly and strongly after the decision. reduce short-term interest rates by 25 basis points.

Trump called the "crazy" the yield curve of US bonds and criticized Federal Reserve Chairman Jerome Powell, who does not know what to do.

Earlier this month, Trump asked the Federal Reserve to cut interest rates by one percentage point.

During Wednesday's session, Wall Street had a strong sell, with the Dow Jones Industrial Average recording its largest single-day drop since last October, as investors feared a global recession.

The index closed "down" by 3.05%, which equates to 801.10 points to reach 25,479.42 points, while the index "" fell at the close of the session at 2840.60 points, down 85.72 points or 2.93%.