Bostic: Fed should be cautious if yield curve continues to flatten

FAN Editor
President of the Federal Reserve Bank of Atlanta, Bostic, seen in this handout photo
President of the Federal Reserve Bank of Atlanta, Raphael W. Bostic seen in this handout photo obtained by Reuters October 6, 2017. Federal Reserve Bank of Atlanta/Handout via REUTERS

January 8, 2018

ATLANTA, Ga (Reuters) – Atlanta Federal Reserve bank president Raphael Bostic joined in warning that a flattening yield curve should be treated cautiously, and the central bank should avoid actions that could lead it to invert.

“I am going to do all I can to make sure our policy does not invert the yield curve explicitly. We will be watching that,” Bostic said on Monday. “If we got close to it I would argue strongly that we should be extremely cautious” with further rate increases. He said his “base case” was for two to three rate increases in 2018, compared to a median of three among his colleagues.

(Reporting by Howard Schneider; Editing by Andrea Ricci)

Free America Network Articles

Leave a Reply

Next Post

Boy with terminal cancer named police chief for a day

Last Updated Jan 8, 2018 4:26 PM EST DALLAS — Dallas police officers recently swarmed an apartment complex on in Dallas northwest side. But there was no crime committed at the scene — just a villain, and sadly, a victim. If only police could put handcuffs on cancer. According to CBS […]