Former U.S. Fed chair Janet Yellen said the U.S. Treasury yield curve may signal the need to cut interest rates at some point, but it does not signal a recession.

Yellen, who led the Fed between 2014 and 2018, was speaking at the Credit Suisse Asian Investment Conference in Hong Kong.

The yield curve inverted on Friday for the first time since mid-2007, a shift that has in the past signalled the risk of recession.