Fed's Kaplan Says Inverted Yield Curve Limits Flexibility

The video discusses the importance of a balanced approach to monetary policy, focusing on the dual mandate of full employment and price stability. It highlights concerns about overshooting full employment and undershooting inflation targets, emphasizing the risks of delayed action by the Federal Reserve. The speaker also addresses the significance of the yield curve as a recession indicator and the need for careful monitoring of the 10-year Treasury yield to maintain the Fed's operating flexibility.

What historical trend does the speaker mention regarding the yield curve and recessions?

What is the speaker's stance on the Fed funds rate and its implications for monetary policy?