A recession indicator just flashed its loudest warning ever as Fed Chair Powell signals higher rates

• A key recession indicator flashed its loudest warning ever on Tuesday.
• The inversion between the 2-year and 10-year Treasury yields hit a record 103.5 basis points.
• That came after Fed Chairman Jerome Powell said rates will likely go higher than anticipated.

A key recession indicator flashed its loudest warning ever after Federal Reserve Chairman Jerome Powell said benchmark rates will likely go higher than once anticipated.

The inversion between the 2-year and 10-year Treasury yields hit a record 103.5 basis points on Tuesday, according to Refinitiv data. It later narrowed to 102.4 basis points.