Rising Treasury yields are a sign of optimism in the economic recovery, said a senior Federal Reserve official Friday, signaling no inclination from the central bank to take steps to halt the shift. “We’re seeing signs of rising inflation expectations, back to levels that I think are closer to consistent with our 2% long-run goal, and signs of somewhat higher real yields off in the future, reflecting greater optimism in the economy,” Federal Reserve Bank of New York President John Williams told CNBC in an interview. “So it’s not to me a concern. It’s more of a reflection of the market’s perception of a stronger economic outlook.”
Source: The Bond Buyer
