Fed Chairman Sees Signs of Investor Confidence
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
Low long-term bond yields aren’t signaling a slowdown and reflect investors’ confidence in low inflation and stable economic growth, Federal Reserve Chairman Ben Bernanke said.
“I would not interpret the currently very flat yield curve as indicating a significant economic slowdown,” Mr. Bernanke told the Economic Club of New York yesterday. Because investors may be willing to accept less risk due to stable inflation, “the implications for future economic activity are positive rather than negative.” Low long-term interest rates complicate the Fed’s job of managing the economy because they blunt the effects of increases in the Fed’s short-term rate.
