Fed Governor Kashkari said the recent rise in U.S. Treasury yields is unlikely
to alter policy deliberations, adding that the Treasury market is functioning
normally and liquidity is ample. He said this supports using the federal funds
rate as the primary tool to bring down inflation. Last week yields rose across
maturities; the 10-year closed near 4.73% and the 30-year remained around its
highest level since 2007. Kashkari noted current yields are high versus recent
history but well below 1990s levels, said more data are needed, he would not
pre-judge the next meeting, and he does not expect inflation to return to target
in the near term.
