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Fed's Waller says rising bond yields reflect growth, not inflation

Christopher Waller, a Federal Reserve governor, argues that climbing U.S. bond yields signal stronger growth rather than rising inflation, which he calls well anchored. Some commentators note the yield jump has stirred significant volatility in fixed income trading.

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What happened

Bond yields in the United States have risen. Federal Reserve Governor Christopher Waller said the increase reflects stronger economic growth rather than higher inflation expectations, which he described as well anchored. Other commentators have said the rise in yields has created significant volatility in fixed income trading.

Why it matters

The reports frame the yield increase as a sign of economic strength rather than inflation pressure.

Timeline

  1. Oct 13, 6:57 AM ET: Waller says the rise in US bond yields reflects stronger growth, with inflation expectations remaining well anchored.
  2. Oct 13, 12:32 PM ET: Victoria Scholar of Interactive Investor says significant bond volatility has hit fixed income trading.

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