Williams Says Treasury Yield Surge Reflects Strong U.S. Economy as Sept. Hike Odds Hit 66%
Updated
Updated · CNBC · Sep 2
Williams Says Treasury Yield Surge Reflects Strong U.S. Economy as Sept. Hike Odds Hit 66%
3 articles · Updated · CNBC · Sep 2
Summary
Multi-year Treasury yield highs reflect economic strength rather than market dysfunction, New York Fed President John Williams said, pointing to a solid U.S. outlook.
AI, data-center and broader technology investment are fueling that outlook, he said, arguing the economy is driving tighter financial conditions rather than the reverse.
Williams declined to signal whether he backs a Sept. 15-16 rate hike, saying recent inflation readings are encouraging but too limited to show whether current policy will return inflation to target.
CME pricing put the odds of a September Fed hike at about 66% on Wednesday, even as Williams said inflation expectations remain well anchored despite tariff- and Iran War-linked price pressures.