Fed's Evans says premature to read much into yield curve

Published:Friday, September 14, 2018
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feds-evans-says-premature-to-read-much-into-yield-curve

FORT WAYNE, Ind. (Reuters) - A narrowing gap between long-term and short-term borrowing costs does not necessarily signal a coming recession, Federal Reserve Bank of Chicago President Charles Evans said on Friday.

Federal Reserve Bank of Chicago President Charles Evans participates in a moderated discussion in Zurich, Switzerland October 11, 2017. REUTERS/Arnd Wiegmann

It is “premature” to read such a signal into the flattening yield curve, he said, noting that long-term borrowing costs have been declining for a while, and that all other signals from economic data suggest a strong economy.

Reporting by Ann Saphir; Editing by Chizu Nomiyama

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