(Reuters) - The narrowing gap between yields on long-term and short-term Treasury bonds has helped convince at least one U.S. central banker the Federal Reserve should stop raising interest rates until and unless inflation or growth picks up.
Minneapolis Federal Reserve Bank President Neel Kashkari, who does not vote this year on Fed policy but takes part in the U.S. central bank’s regular discussion of interest-rate policy, said in a Monday blog post that the flat yield curve means interest rates are close to neutral. “This suggests that there is little reason to raise rates much further, invert the yield curve, put the brakes on the economy and risk that it does, in fact, trigger a recession,” he said.
Reporting by Ann Saphir; editing by Diane Craft
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