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10-Year Treasury Yield: Is the US Economy Overheating?

Sarah Sands
10-Year Treasury Yield: Is the US Economy Overheating?

In the previous part, we discussed that Goldman Sachs (GS) thinks that the interest rate hike will move at a faster pace in the economy. The rising budget deficit and falling unemployment rate are mainly signaling that the interest rate could move at a faster rate, according to Goldman Sachs. Since the US economy (SPY) is moving at a full employment capacity, many analysts think that the US economy (QQQ) is overheating. Rising inflation, higher backlog orders since 2004, and rising transportation costs are signaling that the US economy is overheating.