Esther George says the Fed’s ‘large balance sheet’ may have helped cause the yield curve inversion

Esther George, the Kansas City Fed President, stated that she believes the Federal Reserve is partly responsible for the recent inverted yield curve.  An inverted yield curve happens when the interest rate for short-term bonds are higher than the interest rates for long-term bonds, and George suggest that the Federal Reserve could be influencing the long end of things. Inverted yield curves often signal to a possible recession, however George says that she does not see the signal of a possible downturn.