Higher yields on U.S. bonds are a good thing, Federal Reserve Governor Christopher Waller aid, arguing that they reflect stronger economic growth rather than rising concerns over inflation,
\n\n“If this is all because of higher growth, that’s a good thing,” Waller said at a Bloomberg event in Mumbai Tuesday. “I’d rather have higher growth and higher yields than low growth and low yields.”
\n\nYields on 10-year U.S. Treasuries were falling on Tuesday, sliding 0.027 percentage point to 5.217. Despite the decline, yields are still near the highest yields in 24 years. Bond yields move in the opposite direction of bond prices, so a rising yield indicates falling prices for bonds.
\n\nBond yields were held down for many years by Fed policy—including forward guidance that indicated the policy rate would stay low and large bond purchases by the central bank—and expectations that growth would be sluggish.
\n\nWaller, a member of the Fed’s Board of Governors, challenged the view held by some analysts that Iran-war and tariff-related inflation fears were pushing up yields.
\n\n“Inflation expectations are well anchored, so all of the build-up is not coming from an inflation premium,” Waller said. “That’s not where it’s coming from. So it is a…
Original source: https://www.breitbart.com/economy/
