John Williams Says Strong Economy Is Driving Higher Treasury Yields

According to CNBC, New York Federal Reserve President John Williams said the recent jump in Treasury yields reflects a strong economy rather than market dysfunction. In a "Squawk Box" interview, he said he is still reviewing economic data and did not say whether he thinks another interest-rate hike is needed. Williams said the Treasury market move is being driven largely by a strong U.S. economy and outlook, supported by heavy investment in AI, data centers and technology, and added that inflation expectations remain well-anchored despite this year's rise in prices tied to tariffs and the Iran War.