By Michael S. Derby
Sept 2 (Reuters) - Federal Reserve Bank of New York President John Williams said on Wednesday rising long-term bond yields aren't driven by inflation fears but are instead a reflection of a solid economy, in comments that also said he was still collecting information to drive his next monetary policy decision.
In terms of the increase in real-world borrowing costs, "what's driving it…is really a strong U.S. economy and a strong economic outlook fueled by big investments in AI and data centers and technology in general, so I see this as more of a reflection of the strength of the economy," Williams said on CNBC.
Williams downplayed the idea that worries over inflation are driving a surge in borrowing costs. Market moves have rattled investors and even prompted action by the Treasury Department aimed at helping limit the increase.
Williams indicated that higher borrowing costs, which in theory should create restraint on economic activity, don't definitely drive the monetary policy choices of a central bank that must take responsibility for getting too-high levels of inflation back to the 2% target.
#williams
Sept 2 (Reuters) - Federal Reserve Bank of New York President John Williams said on Wednesday rising long-term bond yields aren't driven by inflation fears but are instead a reflection of a solid economy, in comments that also said he was still collecting information to drive his next monetary policy decision.
In terms of the increase in real-world borrowing costs, "what's driving it…is really a strong U.S. economy and a strong economic outlook fueled by big investments in AI and data centers and technology in general, so I see this as more of a reflection of the strength of the economy," Williams said on CNBC.
Williams downplayed the idea that worries over inflation are driving a surge in borrowing costs. Market moves have rattled investors and even prompted action by the Treasury Department aimed at helping limit the increase.
Williams indicated that higher borrowing costs, which in theory should create restraint on economic activity, don't definitely drive the monetary policy choices of a central bank that must take responsibility for getting too-high levels of inflation back to the 2% target.
#williams
7 hours ago
