In remarks reported by CNBC, New York Fed President John Williams attributed the recent jump in Treasury yields to a robust economy rather than market dysfunction. In a CNBC Squawk Box interview, he said he is still reviewing incoming data and did not indicate whether another rate increase would be appropriate.

Williams said the move in the Treasury market is driven largely by the solid economy and its outlook, supported by sizable investment in AI, data centers, and technology.

He added that inflation expectations remain well anchored despite this year's rise in prices tied to tariffs and the Iran War.