July 12, 2016 / 3:05 PM / 3 years ago

Fed's Bullard: flat yield curve a flight to safety, not a recession warning

St. Louis Fed President James Bullard speaks about the U.S. economy during an interview in New York February 26, 2015. REUTERS/Lucas Jackson

ST. LOUIS (Reuters) - The flattening of the U.S. bond yield curve amid record-low long-term interest rates is a sign global investors want to shun risk, not a signal about weakening U.S. growth, St. Louis Fed President James Bullard said on Tuesday.

“Wall Street is taking it as a signal that growth is slowing. I think it is a flight to safety following the Brexit shock,” Bullard said of the recent U.K. vote to leave the European Union. “That is driving yields down and I would not take it as a signal of U.S. growth prospects.”

Reporting by Howard Schneider; Editing by Chizu Nomiyama

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