- Fed Governor Christopher Waller said in New Delhi on Tuesday that higher long-term US Treasury yields are reducing demand in interest-rate-sensitive sectors such as housing and autos.
- Waller said the Fed does not intend for higher yields to tighten conditions, but he described them as doing a little bit of the work of monetary policy.
- The remarks tie the yield surge directly to the Fed's policy stance, framing bond-market tightening as a partial substitute for rate hikes.
Quotes
“When yields go up, is that going to impact interest-sensitive sectors like housing and autos and other things? Yeah, of course it is”
“doing a little bit of the work”