Fed's George: Much of the increase in yields reflects growing optimism in the strength of the recovery

Comments from the KC Fed President

• Mon pol is set to remain highly accommodative for some time
• Fed is positioned to patient
• It's too early to discuss pulling back on accommodation given unemployment and below-target inflation
• Recent rise in long-term rates does not warrant a response
• Much of the increase in yields reflects growing optimism in the strength of the recovery
• Additional monetary stimulus could exacerbate the unevenness that has been the defining characteristic of the pandemic downturn
• Unemployment rate of 6.3% likely underestimates slack in labor market

If one Fed President breaks away from the pack and starts talking about taper, George is a good bet to be that person but she's certainly not doing that today. It's another sign that there's nothing to fear from the FOMC (for now).