Apr

16

April 16 (Bloomberg) — Federal Reserve Bank of Dallas President Richard Fisher commented on the yield curve in the question-and-answer period following a speech to the Equipment Leasing and Finance Association's Financial Institutions Conference today in Irving, Texas.

A flat yield curve, with little difference between short-term and long-term yields, is "a vote of confidence in central banks around the world. Part of it is a vote of confidence. They (investors) know we will not throw caution to the wind. I don't view it as a harbinger of a recession. This is a vote of confidence in central bankers."

Alternatively, a flat yield curve? That would show inflation expectations to be well anchored deep into the future.

A positive yield curve? That would show investors are bullish on the economy, thanks in part to their faith in central banks.


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