More comments from near Fed Pres. Williams (voting member):

  • Doesn’t see higher yields reflecting a big inflation view shift.
  • Is not surprised bond yields have risen.
  • Term premia factors are a big part of rising bond yields.
  • No prediction on when balance sheet contraction will stop.
  • Financial sector reserves still look abundant.
  • Fed has no current plans for asset sales.
  • Hard to know how Fed bond holdings are affecting yields.
  • Reduced immigration will likely mean slower growth.