FILE PHOTO: White House Council of Economic Advisers Chairman Kevin Hassett addresses reporters during the daily briefing at the White House in Washington, U.S. February 22, 2018. REUTERS/Jonathan Ernst/File Photo
January 4, 2019
WASHINGTON (Reuters) – The U.S. Treasury yield curve is not currently a reliable recession indicator because quantitative easing has depressed yields on the long end of the curve, a top White House economic adviser said on Friday.
“When the yield curve inverts then that usually is a sign that there’s a recession coming,” Kevin Hassett, chairman of the White House Council of Economic Advisers, told CNBC. “But right now, I think the yield curve is a really difficult signal to read because the back end of the curve is still being impacted by quantitative easing.”
(Reporting by Eric Beech; Writing by Tim Ahmann; Editing by Leslie Adler)