Companies from all sectors and even those who aggressively hired employees during the pandemic are on the verge of hiring freezes due to macroeconomic uncertainty hovering around the world. Companies like Amazon, Shopify, and Peloton were some big names that almost doubled their workforces to manage smoothly through the pandemic surge and meet customer demand.
The world was just recuperating from the COVID-19 induced economic shocks in 2022, but two major growth risks are looming large against a backdrop of alarmingly high inflation. The world economy was already facing a multi-year high inflationary pressure which got more severe due to the Russia-Ukraine conflict, which further led to the tightening of the economic cycle by the Fed.
Last week, the carefully monitored yield differential between the 2-year and 10-year Treasury notes inverted. The yield on two-year Treasury notes reached 2.44 %, while the yield on 10-year notes was 2.38 %.