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Moody’s Capital Markets Chief Economist John Lonski on the U.S. trade tensions with China and concerns about the U.S. economic outlook. The yield curve is blaring a recession warning. The spread between the U.S. 2-year and 10-year yields on Wednesday turned negative for the first time since 2007. Such a development has occurred ahead of each and every U.S. recession of the last 50 years, sometimes leading by as much as 24 months.

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