Imagine the economy as a big playground. Sometimes it's super busy and exciting, other times it slows down a bit. This week, we saw some signs that the US economy might be cooling off.
Several reports showed that people aren't feeling as confident about the economy as they used to. This made investors think that interest rates – which affect borrowing money – might go down soon.
- Consumer confidence fell to its lowest point since June.
- Investors are betting that the Federal Reserve (like a playground monitor) will lower interest rates.
- Government bond prices went up, meaning their yields (interest rates) went down.
| What happened | Number |
|---|---|
| Lowest consumer confidence since | June |
| Possible drop in 10-year Treasury yield | 4.25% |
| Target yield for 10-year Treasury by April 25 | 4.15% |
This is important because changes in interest rates and bond prices affect how much it costs to borrow money, which has a big impact on businesses and the whole economy. It’s like the cost of playground equipment changing!
