Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said the recent rise in U.S. Treasury yields does not warrant concern and is unlikely to influence monetary policy decisions.
Speaking on CBS’s Face the Nation on Sunday, Kashkari noted that the Treasury market remains liquid and functioning normally despite elevated yields. The 10-year Treasury note ended last week near 4.73%, while the 30-year bond hovered near its highest level since 2007.
Kashkari emphasized that while current yields are higher than in recent years, they remain below levels seen during the 1990s. He added that Treasury market conditions do not pose a risk to the Federal Reserve’s policy stance.
At the Fed’s July meeting, officials maintained interest rates for the fifth consecutive time. Kashkari was among three policymakers who dissented in favor of a 25-basis-point increase, citing persistent inflation concerns. He stated that additional data is needed before the September meeting, noting uncertainty over whether inflation will stabilize near the Fed’s target in the near term.
Kashkari also said he did not want to prejudge the outcome of the upcoming policy decision.
