IEF - Chart Of The Moment: The 2-Year Treasury And Dollar Index Over 2 Decades
In late 1998, the 2-year Treasury yield and the DXY index started to descend in lockstep once the Federal Reserve (Fed) finally decided to cut rates as a proactive step based on its market and economic concerns around Long-Term Capital Management’s disorderly implosion and the Asian financial crisis’s lasting impact on the global economy. Two decades later, the Fed still remains the world’s monetary authority and is faced with a similar dilemma of whether to cut rates to address flagging global growth, structurally low inflation, and the now-mixed domestic economic data. What has made this