Fed's Bullard Blames Central Bank for Flattening Yield Curve
- St. Louis Fed chief warns curve may invert later this year
- Says aggressive rate hikes not warranted due to low inflation
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Blame the U.S. central bank for the flattening the yield curve, said Federal Reserve Bank of St. Louis President James Bullard, who urged his colleagues to avoid aggressive policy tightening that would push shorter-term rates above those on longer-dated Treasuries.
“It’s been the Fed, I think, that has flattened the curve more than worries by investors on the state of the global economy,” Bullard told reporters Monday in New York. “My personal opinion is the Fed does not need to be so aggressive that we invert the yield curve,” because inflation is relatively low and stable, he said.