No worries.

"Stocks fell broadly in morning trading on Wall Street Tuesday (yesterday) ahead of a key decision on interest rates by the Federal Reserve." moneycontrol. "The Dow Jones Industrial Average fell 393 points, or 1.3%, to 30,629 and the Nasdaq fell 1%." "The yield on the 2-year Treasury, which tends to follow expectations for Fed action, rose to 3.97% from 3.95%," while "The 10-year yield, which influences mortgage rates, rose to 3.58% from 3.52%." Since yields on 10-year bonds are lower than yields on 2-year bonds, is this inversion of the yield curve? Does this mean the US is in recession? "The yield curve inverts when long-term interest rates drop below short-term rates, indicating that investors are moving money away from short-term bonds and into long-term ones. This suggests that the market as a whole is becoming more pessimistic about the economic prospects for the near future." Investopedia. "A popular rule of thumb is that two consecutive quarters of decline in gross domestic product (GDP) constitute a recession." Investopedia. "US GDP has fallen for two consecutive quarters - 1.6% during the first quarter of 2022, and 0.6% the next. In most countries, that's a recession. Just not in the US." BBC. Even as US markets fell, Indian stock markets rose by around 1%, as "Notwithstanding the rising yields and a stronger dollar, Foreign portfolio investors (FPIs) net bought shares worth Rs 1,196.19 crore (Rs 11.9619 billion), according to provisional data." ET. "The US dollar is experiencing a once-in-a-generation rally." Mint. "The dollar's rise this year is being fueled by the Federal Reserve's aggressive interest-rate increases, which have encouraged global investors to pull money to pull money out of other markets to invest in higher-yielding US assets." "It's early days yet," said Prof Raghuram Rajan. "We're going to be in a high-rates regime for some time. The fragilities will build up." "Much of the weakness across broader EM (emerging markets) - for example in the South African rand or the Indian rupee versus the dollar - reflects challenges that are qualitatively not dissimilar to many DMs (developing economies): Policy rate increases that have struggled to outpace the US Fed, for example, and shocks to energy prices that have exacerbated current account deficits. The challenge for these EMs is that weaker currencies complicate what is already a tough challenge of bringing inflation and inflation expectations under control." Goldman Sachs. The Reserve Bank of India has responded by selling dollars and buying rupees to keep the rupee falling below 80 to the dollar. "India's forex reserves have fallen to a two-year low of $550 billion from a peak of $642 billion in October 2021." ET. "Alongside its intervention in the spot market, the central bank's forward dollar holdings have fallen to $22 billion from $64 billion in April." The Fed doesn't seem worried about recession. Neither are we.