Fed’s Kashkari: Higher neutral rate means monetary policy may not be as tight as thought

  • Possibly higher neutral rate means Fed can take more time to assess upcoming data before starting rate cuts
  • That will entail “less risk” to the economic recovery
  • Core inflation making “rapid progress” towards Fed’s target
  • But economic data not “unambiguously positive”
  • There are some signs of weakness including rising consumer delinquencies
  • Full remarks

Treasury yields are rising further to the highs for the day now. 10-year yields are up some 8 bps to 4.11% and that is keeping the dollar in the driver’s seat at the moment.

This article was written by Justin Low at www.forexlive.com. Source