Fed's Williams: US economy is still in a deep hole

The rise in the 10-year Treasury yield is a response to fiscal support and coronavirus vaccines, New York Federal Reserve President John Williams told CNBC on Friday, as reported by Reuters.

Additional takeaways

"Rise in yields is not a concern."

"The US economy is still in a deep hole."

"Right now, the economy has quite a ways to go to get back to max employment 2% inflation."

"Not concerned about fiscal stimulus being excessive."

"Very strong asset prices reflect investors looking ahead beyond COVID and low interest rates."

"Not seeing evidence of imbalances."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen losing 0.26% on the day at 90.35.