U.S. Markets

Yield curve inversion shows Fed needs to cut rates: Trump adviser

FILE PHOTO: White House trade adviser Peter Navarro listens to a news conference about a presidential executive order relating to military veterans outside of the West Wing of the White House in Washington, U.S. March 4, 2019. REUTERS/Leah Millis

WASHINGTON (Reuters) - The inversion of the U.S. Treasury yield curve is yet another signal that the Federal Reserve needs to cut interest rates, White House trade adviser Peter Navarro said on Wednesday.

“The kind of volatility you see today in the inversion of the yield curve is sending yet another signal that the Fed needs to lower ... interest rates by 50 basis points as quickly as possible,” Navarro told Fox Business Network.

Reporting by Susan Heavey; Writing by Tim Ahmann; Editing by Chizu Nomiyama