Former U.S. Federal Reserve chair Janet Yellen said on Monday the U.S. Treasury yield curve may signal the need to cut interest rates at some point, but it does not signal a recession.
Yellen, who led the Fed between 2014 and 2018, was speaking at the Credit Suisse Asian Investment Conference in Hong Kong.
The yield curve inverted on Friday for the first time since mid-2007, a shift that has in the past signaled the risk of recession. The slope regained its ascendancy in European trading on Monday after stronger-than-expected German data.
Charles Evans, a voting member of the Fed’s policy-setting Federal Open Market Committee, told the same conference on Monday that it was understandable for markets to be nervous when the yield curve flattened.
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Dean Popplewell
He has a deep understanding of market fundamentals and the impact of global events on capital markets.
He is respected among professional traders for his skilled analysis and career history as global head
of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean
has played an instrumental role in driving awareness of the forex market as an emerging asset class
for retail investors, as well as providing expert counsel to a number of internal teams on how to best
serve clients and industry stakeholders.
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