March 26, 2018 / 9:33 PM / a year ago

Flat 'yield curve' does not signal U.S. weakness: Fed official

FILE PHOTO - Cleveland Federal Reserve Bank President and CEO Loretta Mester gives her keynote address at the 2014 Financial Stability Conference in Washington December 5, 2014. REUTERS/Gary Cameron

PRINCETON, N.J. (Reuters) - The recent flattening of the yield curve, as longer-term bond market rates approached shorter-term rates, does not signal the U.S. economy could weaken, Cleveland Federal Reserve President Loretta Mester said on Monday.

There is “no evidence” to draw this conclusion, she said at Princeton University, adding that “structural factors” such as years of bond-buying by the world’s major central banks likely play a bigger role in compressing the curve.

Reporting by Jonathan Spicer; Editing by Leslie Adler

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