Kashkari Dismisses Treasury Yield Surge, Says Fed Still Focuses on Federal Funds Rate
Updated
Updated · Bloomberg · Aug 23
Kashkari Dismisses Treasury Yield Surge, Says Fed Still Focuses on Federal Funds Rate
3 articles · Updated · Bloomberg · Aug 23
Summary
Neel Kashkari said the recent rise in US Treasury yields is unlikely to alter Federal Reserve policy deliberations, downplaying worries that higher market rates could complicate the inflation fight.
The Minneapolis Fed president said the Treasury market is functioning normally, with trades going through and liquidity holding up, leaving the fed funds rate as the Fed’s primary tool.
Kashkari’s comments address concern that a sharp yield move might signal market stress or force a policy response; instead, he framed it as a market development with no immediate monetary-policy consequence.