US FED: Warsh--Yield Curve Not Suggesting Economic Weakness

Fed Governor Kevin M. Warsh (voter) said the shape of the yield curve did not economic weakness. He said the stability of long-term market interest rates as measured by the 10-year Treasury yield remains an "important issue for policymakers." He said that if this reflects increased demand from foreign investors, "the decline should be reflected in a decline in term premiums."