Part 7/8:
As the discussion pivoted towards the 10-year Treasury yield—which has reached levels above 4.6%—Waller attributed the spike to market reactions to the perceived lack of sufficient fiscal restraint in government policies. Financial markets expected stricter measures to manage issuance of Treasuries, and the current yields reflect a demand for higher returns amid increasing Treasury supply.
Furthermore, he acknowledged a broader trend of risk aversion towards American assets, yet remained hopeful that improved economic growth, coupled with stable inflation, could lead to a revival in demand for U.S. securities.