Expectations the central bank could begin cutting rates as soon as March have been slowly decreasing, with CME s FedWatch Tool showing a 65.7% chance for a cut of at least 25 basis points (bps) for the month, down from 79% a week ago.
A key recession indicator highlighted by Rosenberg is the inverted yield curve, which has been inverted for 13 months, the longest period since 1979-80.
The three major U.S. stock indexes oscillated between modest gains and losses throughout the session but finished up for the day. All are on course for monthly, quarterly, and annual gains.
Comments Friday by Fed Bank of New York President John Williams that it was too soon to be talking about rate cuts dampened some of the day s optimism.