Yield curve not reliable US recession indicator: Trump adviser

WASHINGTON: The US Treasury yield curve is not currently a reliable recession indicator because quantitative easing has depressed yields on the long end of the curve, a top White House economic adviser said on Friday.

“When the yield curve inverts then that usually is a sign that there’s a recession coming,” Kevin Hassett, chairman of the White House Council of Economic Advisers, told CNBC. “But right now, I think the yield curve is a really difficult signal to read because the back end of the curve is still being impacted by quantitative easing.”