The president of the Federal Reserve Bank of St. Louis supports the Fed gradually raising interest rates early to maintain credibility in controlling inflation, after a sell-off in U.S. government bonds pushed the 30-year bond yield above 5.2%, its highest level in 19 years. Alberto Musalem, president of the St. Louis Fed, said that at the latest meeting he voiced support for a quarter-point rate hike, even though he does not have a vote this year. He views gradual rate increases as less costly and less damaging to the economy than having to accelerate hikes sharply later. The FOMC meeting held rates steady as expected, but three of the 12 voting members dissented and favored a quarter-point increase. Meanwhile, data from CME FedWatch indicates investors are pricing in a 67% chance that the Fed will raise rates by a quarter point at the September meeting.