Stock market drop doesn't signal recession, Yellen says

Former Fed Chair Janet Yellen doesn’t see today’s market decline or yield-curve inversion signaling an economic recession.

“I think that the U.S. economy has enough strength to avoid that,” she told Jon Hilsenrath on Fox Business Network. “But the odds have clearly risen and they are higher than I’m frankly comfortable with.”

And while the yield curve inversion has been “pretty good signal of recession” in the past, it may not be as good of a predictor this time, Yellen said.

“There are a number of factors, other than market’s expectations about the future path of interest rates, that are pushing down long-term yields,” she said.