Kaplan Says Fed Should Avoid ‘Knowingly’ Inverting Yield Curve

Federal Reserve Bank of Dallas President Robert Kaplan cautioned against speeding up the pace of interest-rate increases by the U.S. central bank, in part due to concerns over a narrowing spread between short-term borrowing costs and longer-term yields.

Fed officials lifted rates three times in 2017. Projections released in March showed a fairly even split between policy makers who favored three hikes this year and those who wanted four, and investors are increasingly leaning toward the latter.