New York Fed Pres. John Williams: Rise in yields is not a concern

New York Fed Pres. John Williams speaking on CNBC

• Rising 10 year treasury yield is responsive to fiscal support, vaccines
• The rise in yields not a concern
• Jobs are down around 10 million from the pre-pandemic levels
• economy has quite a ways to go to get back to maximum employment/2% inflation
• economy is still in a deep hole
• not concerned about fiscal stimulus being excessive
• seeing quite a pickup in residential real estate prices
• strong asset prices reflect investors looking ahead to a more robust recovery, and that we are in a low interest rate environment globally
• concern is we see really strong imbalances. Don't see evidence for imbalances however
• Decisions on monetary policy are based on where the economy is in regard to max. employment and reaching inflation target at 2% on a sustained basis.
• Does not see the evidence for leverage level concerns

As president of the New York Fed, Williams is a permanent voting member on the FOMC