Waller says higher long-term yields are doing some of the Fed's work
The Fed governor said rising Treasury yields are cooling housing and autos.
Federal Reserve · Tuesday, October 13, 2026 · 10:15 AM ET
Fed Governor Christopher Waller said the surge in long-term Treasury yields is helping to curb demand in rate-sensitive sectors such as housing and autos, Bloomberg reported. He spoke at Bloomberg's New Economy Forum in New Delhi.
What he said
"When yields go up, is that going to impact interest-sensitive sectors like housing and autos and other things? Yeah, of course it is," Waller said, adding that while that is not the Fed's intention, higher yields are "doing a little bit of the work" of tighter monetary policy (Bloomberg). Reuters reported earlier that he said the recent rise in yields has been driven by stronger growth and AI investment rather than higher inflation expectations, which he called "well anchored."
The backdrop
Bloomberg put the 10-year Treasury yield at 5.19% in early trading, down five basis points. Traders widely expect the Fed to hold rates this month, with a December hike still possible, according to CME FedWatch (Reuters). September consumer prices come Wednesday. Our earlier piece: Waller on more rate hikes. See also the week-ahead story.