On May 25, Federal Reserve Governor Waller said on Wednesday that although an inversion of the yield curve often indicates a bad economic outlook in the context of stable inflation, the current inversion of the yield curve may indicate a better economic situation in the future.
“What we’re seeing in the yield inversion is not concern about poor future economic outcomes, but belief and trust that we’re going to bring inflation back to low levels, and once we do that, lower interest rates going forward,” he said. Waller said.
He said lowering inflation was his main focus, “I’m trying to get inflation down.”