[Federal Reserve's Harker: Rise in U.S. Treasury Yields Not Due to Loss of Confidence in Inflation] Jin10 Data, September 26 – Cleveland Federal Reserve President Beth Harker stated that the recent sharp increase in U.S. Treasury yields is not due to the market losing confidence in inflation cooling down, but is primarily driven by factors such as rising real interest rates, strong economic outlook, fiscal policy, and competition for investor funds. She noted that current inflation expectations remain 'generally well-anchored,' but inflation persistently above the Federal Reserve's 2% target still imposes real costs and may impact economic planning and wage pressures. Harker emphasized that the biggest risk to inflation at present is the formation of an 'inflation mindset,' where the public begins to believe that high inflation will persist for the long term. She pointed out that inflation has been above the target level for several consecutive years, and the Federal Reserve needs to ensure that monetary policy remains restrictive to bring inflation back down to the 2% target. Regarding the bond market, Harker stated that the rise in yields partly reflects the market's repricing of Federal Reserve policies and government fiscal policies, while investment demand from the AI and technology sectors is also competing with the bond market for funds. She further remarked that the current U.S. fiscal trajectory is unsustainable.