Esther George on Inverted Yield Curves and FED's Balance

The Yield curve has often been used by investors to aid them in seeing when prices for securities are abnormally large or small. A normal yield curve tells that bonds with a longer maturity period should have a larger yield than those with shorter terms. In recent United States history, an inversion of this curve often suggested that an upcoming recession is approaching. With the country on the midst of another yield curve inversion, the Kansas City Fed President Esther George believes that the Fed may be partially responsible. With the yield of the 10-year Treasury note not reaching its expected yield twice, the Fed decided to keep increasing the balance sheet to counter this offset. Though the situation is not ideal, George believes that the United States should not be worried about a potential recession as conditions are not as bad as they could be.

https://www.cnbc.com/2019/08/22/esther-george-says-the-feds-large-balance-sheet-may-have-helped-cause-the-yield-curve-inversion.html