Economics
Fed's Bullard Warns Yield Curve May Invert in a ‘Bearish’ Sign
- St. Louis Fed official warns inversion may happen in 2018
- He says ‘this deserves market and policy maker attention’
CIFC's Wriedt Says Great Time for High-Yield Defense
This article is for subscribers only.
Federal Reserve Bank of St. Louis President James Bullard cautioned that short-term interest rates may exceed long-term rates by late 2018, creating a so-called inversion of the yield curve that would bode poorly for the U.S. economy.
“There is a material risk of yield curve inversion over the forecast horizon if the FOMC continues on its present course of increases in the policy rate,’’ Bullard, who doesn’t vote on the policy-setting Federal Open Market Committee until 2019, said on Friday in Arkansas. “Yield curve inversion is a naturally bearish signal for the economy. This deserves market and policy maker attention.’’