Federal Reserve Governor Christopher Waller said at a Reuters NEXT Newsmaker event that the safety premium for U.S. Treasury debt has largely disappeared, which has led him to raise his neutral rate estimate. ^[1] Waller attributed rising Treasury yields to concerns about the U.S. fiscal situation and to competition for capital from artificial intelligence infrastructure investment. ^[2] Waller said at the same event that for the United States to grow its way out of its $40 trillion debt load, structural deficits would need to be brought closer to zero percent of GDP, from about 6% in the current fiscal year. ^[3] Waller said that if upcoming data confirms inflation is cooling, he is inclined to favor keeping interest rates steady at the U.S. central bank's next policy meeting. ^[4] Christopher Waller raised his estimate for the neutral rate of interest, indicating that higher policy rates are required for any given rate of inflation. ^[5]