Fed’s Waller: inverted yield curve may signal belief in falling inflation

Federal Reserve Governor Christopher Waller on Wednesday said that while inverted yield curves in the context of stable inflation often point to a bad economic outlook, the current yield curve inversion may signal better times ahead.

“What you’re seeing in the inversion is not so much fears about bad economic outcomes in the future, but belief and trust that we’re going to bring inflation back down and rates will be lower in the future once we do that,” Waller said at a University of California, Santa Barbara economic summit.

And getting inflation down, he said, is his main focus. “I’m on my job trying to get inflation down.”
Source: Reuters