Economics
Williams Says Fed Shouldn't Be Afraid to Invert the Yield Curve
- Fed’s goals may require short-term rates above long-term ones
- Unemployment and inflation ‘about as good as it gets,’ he says
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The Federal Reserve shouldn’t hesitate to invert the yield curve if raising short-term interest rates above long-term yields becomes necessary to achieve the U.S. central bank’s targets, New York Fed President John Williams said.
“We need to make the right decision based on our analysis of where the economy is, and where it’s heading, in terms of our dual mandate goals,” Williams said Thursday while speaking to reporters after an event in Buffalo, New York. “If that were to require us to move interest rates up to the point where the yield curve was flat or inverted, that would not be something I would find worrisome on its own.”