Fed's Evans: 10-year Treasury rates to move up as economy improves

Chicago Federal Reserve Bank President Charles Evans said on Wednesday that he would expect the longer-term 10-year Treasury bond yields to move up as the economy improves, as reported by Reuters.

Additional takeaways

"Businesses say it's challenging to find workers but the wage story is important."

"Health concerns, childcare, schools are some reasons workers may not want to return."

"Would be natural for wages to move up."

"Higher wages need not be inflationary."

"At the moment, I don't see overheating."

"Inflation expectations are pretty well-anchored at 2% or a little lower."

"Would be good to have 2.5% inflation."

"If inflation was 3% and transitory, should not get overly concerned."

"Confident the Fed will pay close attention if it sees inflation expectations inconsistent with 2%."

"It's too early to see labor market scarring."

"There's a long way to go to get to 2% average inflation."

Market reaction

US Dollar Index continues to inch higher in the American trading hours and was last seen gaining 0.08% at 91.35.