Fed’s Quarles: Yield curve inversion not a harbinger of recession

Head of Supervision at the Federal Reserve (Fed), Randy Quarles, said that he didn’t see the yield curve inversion as much a “harbinger of recession.”

Key quotes (via Reuters)

• Fed communications of policy in general has been “pretty good”.
• Fed should be comfortable if inflation was ‘mildly’ above 2 percent for a period.
• Yield curve due to size of Fed balance sheet.