Waller says next month's CPI and PPI are expected to be at reasonable levels

Federal Reserve Governor Waller stated that mortgage rates and auto loan rates are not low, and he expects the CPI and PPI next month to be “at reasonable levels.” The “eased financial environment” actually reflects stock prices. He believes that the interest rates affecting ordinary Americans are not relaxed. He pointed out that the United States cannot maintain a 3% structural fiscal deficit indefinitely; although this does not necessarily mean the country will “fall off a cliff,” it could lead to further increases in yields. Fiscal factors and competition for capital by artificial intelligence are both driving yields higher, and some studies also show that the premium on U.S. Treasuries has disappeared, which is also pushing yields up.