Economics

Powell Doesn’t See High Recession Risk Though Eyeing Yield Curve

  • Repeats gradual rate hikes best way to keep economy strong
  • Powell speaks to Rhode Island business leaders in Washington

Jerome Powell, chairman of the U.S. Federal Reserve.

Photographer: Andrew Harrer/Bloomberg
Lock
This article is for subscribers only.

Federal Reserve Chairman Jerome Powell played down the signal being sent by a flatter yield curve and said the risk of recession was not especially high.

“There’s no reason to think that the probability of a recession in the next year or two is at all elevated,” he told a gathering of business leaders Thursday in Washington hosted by Rhode Island Senator Jack Reed. “We look at the yield curve but it’s one factor. It’s not inverted now.”