New York Federal Reserve President John Williams said the recent rise in U.S. Treasury yields reflects a strong economy and resilient growth expectations rather than financial-market stress. He cited investment in artificial intelligence, data centers and technology, and said economic conditions are influencing financial conditions more than the reverse. Williams declined to say whether the Federal Reserve should raise its benchmark interest rate this month, saying policymakers must wait for more evidence on whether current policy can return inflation to target over the next one to two years. Recent inflation data have been encouraging, but he said one or two months of readings are insufficient. Markets were pricing in about a 66% chance of a September hike at the Federal Open Market Committee meeting on September 15-16. Williams said longer-term inflation expectations remain well anchored despite price pressures linked to tariffs and the war in Iran.