Fed’s George: Rising Yields Reflect Optimism

President of the Federal Reserve of Kansas City, Esther George, said on Thursday that the rising treasury yields are a sign of optimism about economic recovery.

This could further improve when vaccines are more widely distributed, she indicated.

“Much of this increase likely reflects growing optimism in the strength of the recovery and could be viewed as an encouraging sign of increasing growth expectations.”

“The FOMC is positioned to be patient as it follows the outlook for the virus and the economy,”

“It is too early to discuss pulling back on accommodation given continued elevated unemployment, below-target inflation, and the uncertainties surrounding the outlook.”