Fed's Kashkari Says Treasury Market Working 'As It Should'

AI digestMimile.ai EditorialAugust 23, 2026 at 08:23 PM

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Fed's Kashkari Says Treasury Market Working 'As It Should'

Minneapolis Fed President Neel Kashkari said Sunday the US Treasury market is functioning well despite rising yields, with the 10-year ending last week near 4.73%. He added that the recent surge is unlikely to affect monetary policy deliberations. Kashkari repeated concerns about persistent inflation but stopped short of saying he would push for another rate hike in September.

Key Facts

The benchmark 10-year Treasury yield ended last week at around 4.73%.
The 30-year Treasury yield remained near its highest level since 2007.
Kashkari was among three Fed officials who dissented in July in favor of a quarter-point rate hike.
Fed policymakers will next meet in September.
New Fed Chairman Kevin Warsh is scheduled to deliver keynote remarks Friday at the Jackson Hole symposium.

Market Functioning

Kashkari said on CBS's Face the Nation that there is every indication the Treasury market is functioning as it should, with trades taking place and liquidity present. He said this enables the Fed to focus on the federal funds rate as its primary policy tool to bring inflation down. Treasury yields across the curve rose last week, with the 10-year ending at around 4.73%. The 30-year remained near its highest level since 2007.

Policy Stance

Kashkari noted that while Treasury yields are high relative to recent history, they were meaningfully higher in the 1990s. At their July meeting, Fed policymakers left interest rates unchanged for the fifth straight time. Kashkari was among three officials who dissented in favor of a quarter percentage point rate hike due to persistent inflation concerns. On Sunday, he repeated those worries but said he would not prejudge the September meeting. He added that he is not feeling confident right now that inflation is heading back to target in a short period of time.

Jackson Hole Symposium

Investors this week will closely watch new Fed Chairman Kevin Warsh. Warsh is scheduled to deliver keynote remarks on Friday at the central bank's annual symposium in Jackson Hole, Wyoming.

1 source

Fed's Kashkari Says Treasury Market Working 'As It Should'

finance.yahoo.com

Yahoo Finance

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YouTube

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Face the Nation

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CNBC Television

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Kyle OHare

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Fed's Kashkari Says Treasury Market Working 'As It Should'

Key Facts

Market Functioning

Policy Stance

Jackson Hole Symposium

Perspectives

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Perspectives

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