Fed's Bullard: Yield curve inversion is warning

Tuesday, 15. October 2019 10:43

The inversion in the yield curve between the two-year United States Treasury yield and the 10-year Treasury yield is a "warning" for the US economy, Federal Reserve Bank of St. Louis President James Bullard said on Tuesday.

Speaking in London, Bullard noted that central bankers must pay attention to inflation so that it would not stay too low for a long time compared to target inflation of 2%. The central banker stressed that any decisions on future rate hikes will have to be made "on a meeting-by-meeting basis."

Earlier, Bullard called for more rate cuts in the aftermath of the yield curve inversion in the bond market which is seen as many economists as a sign that a recession may take place in the next 18 months.

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