Don't see yield curve as 'iron law': Fed chair Jerome Powell

Federal Reserve officials are monitoring the flattening of the US Treasury yield curve, but don't view its behavior as an "iron law" that predicts economic outcomes, Chair Jerome Powell said on Wednesday.

"We do monitor the slope of the yield curve, but we don't control the slope of the yield curve," Powell said at a press conference after the release of the Fed's latest policy statement, which signaled the Fed is preparing soon to raise interest rates from near zero, likely as early as its next meeting in March.

Investors have recently become worried that the narrowing gap of the yields between short- and long-dated Treasury securities may signal problems ahead for the economy.