Fed’s Bullard Welcomes Rising Treasury Yields

President of the Federal Reserve Bank of St. Louis, James Bullard, said on Thursday that the rise in treasury yields is an adequate consequence to the expected economic recovery and rise in inflation, Reuters reported.

“With growth prospects improving and inflation expectations rising, the concordant rise in the 10-year Treasury yield is appropriate.”

Bullard added that investors seeking higher yields amid expectations for a rise in inflation would be a welcome development by the Fed as it is looking forward to achieving the 2% target for the inflation rate.

Additional government stimulus could help increase spending as savings continue to be exceptionally high and with the market reopening as preventive measures against the pandemic are being eased.