Fed's Evans: Premature to put too much weight on shape of yield curve

Author: Adam Button | Category: Central Banks

More from Evans

  • Flattening of yield curve might suggest heightened risk, but all other indicators are very strong
  • Long-term decline in long-term interest rates makes it harder to interpret implications of flattening yield curve

I think he has a point. The yield curve is the ultimate predictor of recessions but it's not infallible. An inversion with yields at 3% is different than one with yields at 6%.

And as the Fed, you can't put the yield curve about all the other data, which has been strong.

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