Federal Reserve Bank of New York President John Williams said rising long-term bond yields primarily reflect a strong U.S. economy and outlook, supported by investment in artificial intelligence, data centers and technology, rather than fears about inflation. Speaking on CNBC on Wednesday, Sept. 2, Williams said the Federal Reserve's monetary policy decision at its Sept. 15-16 Federal Open Market Committee meeting would depend on incoming data and risks to achieving its objectives. Investors widely expect the central bank to raise its 3.5% to 3.75% federal funds target rate range, as officials remain concerned that inflation is above the 2% target. Williams said recent data on price pressures have been encouraging but cautioned against drawing conclusions from only one or two months. He attributed current inflation above target mainly to trade tariffs and the war in the Middle East, while saying longer-term inflation expectations remain contained. Williams also said Treasury Department efforts to limit increases in borrowing costs do not fundamentally alter the Federal Reserve's monetary policy responsibilities.