Fed's Evans: Not surprising that yield curves tend to be flatter
Chicago Fed president, Charles Evans, speaks to Bloomberg TV now
- Yield curves have showed slightly higher chance of recession
- Q1 growth looks like it's going to be weaker
- Expects a rebound in economic activity in Q2
- Monetary policy is almost at a neutral level
The Fed has been downplaying the odds of a yield curve inversion leading to a recession in the past but the events from last Friday is surely going to make them take more notice from hereon. When it comes to this, a recession could be a self-fulfilling prophecy and that's something the Fed has to be aware about.
That said, they remain among the few major central banks best equipped to deal with such an economic downturn, if it does come about.