New York Fed President John Williams said the recent rise in Treasury yields reflects a strong U.S. economy and outlook rather than market dysfunction. In a CNBC interview, Williams said he was taking a wait-and-see approach on whether an interest rate hike is necessary, saying policymakers need a fuller picture of inflation and other economic data. Traders put the odds of a rate hike at the Sept. 15-16 meeting at about 66% on Wednesday morning, according to the CME Group's gauge. Williams said inflation expectations remain well-anchored despite price increases linked to tariffs and the Iran War, and noted that his position makes him a permanent voter on the Federal Open Market Committee, the Fed panel that sets interest rates.