Cleveland Fed President Says Growth Outlook and Debt Worries Are Pushing Long-Term Treasury Yields Higher

Deep News09-26 07:00

Cleveland Federal Reserve President Beth Hammack said that strengthening growth prospects, concerns about government debt, and market expectations that the Fed will raise interest rates further are driving long-term U.S. Treasury yields higher.

"I think there are a lot of factors at play. One is that I think the growth numbers are quite solid, and I think there is an expectation that this performance will continue," Hammack said Friday at a conference hosted by the Cleveland Fed.

"It also involves how the Fed might respond and what policy actions might be needed," Hammack said, adding that investors are pricing in expectations of further Fed rate hikes.

Hammack said investors have been watching government spending and growing debt. She also said the U.S. government will need to compete with artificial intelligence (AI) projects for financing.

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