Trump: Fed to Blame for 'Crazy Inverted Yield Curve'

President Donald Trump pointed the finger at the Federal Reserve for the inversion of the yield curve that sent stocks plunging on Wednesday.

“Our problem is with the Fed,” Trump tweeted. “Raised too much & too fast. Now too slow to cut.”

Trump is not alone. Many on Wall Street view the inverted yield curve as a sign that the Federal Reserve was too aggressive hiking interest rates last year and too slow to cut this year. The yield on the ten-year Treasury note briefly fell below the yield on 2-year Treasuries, a reversal of their usual relationship that has in the past predicted a recession was in the offing. The yield curve has inverted prior to each of the past seven recessions.

Stocks reacted to the inversion Wednesday by selling off sharply. The Dow Jones Industrial Average plunged by around 2.8 percent.