March 26, 2018 / 9:35 PM / 3 months ago

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

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.

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

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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