The Fed's Kashkari Downplays Concerns Over Rising Treasury Yields, Says Bond Market Still Functioning Normally

BlockBeats News, August 24th. Fed's Kashkari played down market concerns about the rise in U.S. Treasury yields, stating that the market is functioning well and the recent surge is unlikely to impact monetary policy discussions. Kashkari said on Sunday: "Various signs indicate that the U.S. Treasury market is functioning properly, with trades being executed smoothly, and market liquidity is ample, so we can use the federal funds rate as a key policy tool to address inflation."

Last week, yields on U.S. Treasuries of all maturities rose, with the yield on the benchmark 10-year Treasury note closing at around 4.73%. The yield on the 30-year Treasury bond remained near its highest level since 2007. Kashkari stated that although current bond yields are relatively high compared to recent historical levels, they are much higher than the yields of the 1990s. "We need more data, but I don't want to prejudge the outcome of the next meeting. However, I don't currently believe that inflation will fall back to the target level in the short term."