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Harker, Patrick on 2017 November 13 at 03:00

I would like to avoid any inversion of the curve, so my goal is to remove accommodation in a way that we do not run the risk of inverting the yield curve.

I think there are a lot of likely suspects [for the flattening of the yield curve]. One is just simply that other banks the European Central Bank, Bank of Japan, others continue to be highly accommodative, and that is one of the reasons we're seeing the long end flatten out. I am concerned about that, and that's why the pace of removal of accommodation, to me, has to be gradual… I would like to avoid any inversion of the curve, so my goal is to remove accommodation in a way that we do not run the risk of inverting the yield curve. … We're heading toward, in the forecast horizon, a Fed funds rate around 3 percent or so. That's our forecast. But again, we'll take our time to get there, and we'll do it in a very prudent fashion so that we don't disrupt that markets and we run their risk of inverting the yield curve. Harker, Patrick

Bloomberg Interview

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