Williams Links Rising Bond Yields to Strong US Economy

Federal Reserve Bank of New York President John Williams attributed rising long-term bond yields to a strong U.S. economy, rather than inflation fears, in comments on CNBC.

The increase in real-world borrowing costs is driven by big investments in AI and data centers and technology in general, according to Williams.

Williams downplayed the idea that worries over inflation are driving a surge in borrowing costs, saying it's more about the economy affecting financial conditions than financial conditions affecting the economy.