WASHINGTON: The US Treasury yield curve is not currently a reliable recession indicator because quantitative easing has depressed yields on long end of curve, a top White House economic adviser said on Friday.When yield curve inverts then that usually is a sign that theres a recession coming, Kevin Hassett, chairman of White House Council of Economic Advisers, told CNBC.
But right now, I think yield curve is a really difficult signal to read because back end of curve is still being impacted by quantitative easing.