New York Fed’s Williams says stronger economy is driving higher Treasury yields

New York Federal Reserve President John Williams said on Wednesday that the recent rise in Treasury yields appears to reflect a stronger U.S. economy rather than signs of market stress. In a CNBC interview, Williams said he is still reviewing incoming data and is taking a waitandsee approach on whether another interest rate increase will be needed. He said recent inflation data have been encouraging, but that policymakers need a fuller picture before deciding on the next move. Williams said the move in yields is being supported by expectations for growth, including investment in artificial intelligence, data centers, and technology. He also said inflation expectations remain well anchored, even as prices have risen this year because of tariffs and the conflict in Iran.