Analyst: Rising US Treasury yields help tighten financial conditions, but cannot replace the Fed's responsibility to combat inflation.

October 28, according to CNBC, Ben Emons, founder of FedWatch Advisors, stated that the current sell-off in U.S. Treasuries pushing up yields may help tighten financial conditions, but it does not exempt the Federal Reserve from the necessity of raising interest rates later in the year to address inflation.

Emons believes that yields may continue to rise, primarily driven by persistently high energy prices and the risk of a prolonged Iran conflict. He emphasized that higher yields can partially play a tightening role, but "cannot do the Fed's job," and combating inflation still requires the policy rate path to cooperate.