Central Banks
Fed’s Kashkari Says Yields’ Impact on Rate Outlook Is Unclear
- Minneapolis chief calls recent long-term yield rise perplexing
- Kashkari: Fed may have to follow through on rate expectations
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Federal Reserve Bank of Minneapolis President Neel Kashkari said he wasn’t yet convinced that a surge in long-term Treasury yields would lessen the need for further rate hikes, saying it depends on what is driving the recent rise in borrowing costs.
“It’s certainly possible that higher long-term yields may do some of the work for us in terms of bringing inflation back down,” Kashkari said Tuesday during a town hall event hosted by Minot State University.