Kashkari Downplays Treasury Yield Concerns Ahead of September Fed Meeting

Minneapolis Federal Reserve President Neel Kashkari downplayed concerns over rising US Treasury yields, stating that the market is functioning well and the recent surge in yields is unlikely to affect monetary policy discussions.

In an interview last Sunday, Kashkari emphasized that 'all current indications show the US Treasury market is operating normally, trading is active, and market liquidity is ample.'

This comes as the benchmark 10-year Treasury yield ended around 4.73% last week, with the 30-year yield remaining near its highest level since 2007.

Kashkari noted that although current US Treasury yields are relatively high compared to recent historical levels, they were significantly higher in the 1990s.

The next Fed meeting is scheduled for September, and Kashkari will likely play a key role in shaping monetary policy decisions. However, he did not explicitly state whether he would support another rate hike in September, saying 'we need to see more data, but I don’t want to prejudge the next meeting.'