Fed’s Kashkari: Inflation is headed down

Kashkari is speaking on a moderated panel, so more comments could tick in.

  • I’m optimistic we can shrink the Fed’s balance sheet back to pre-crisis trend line
  • We are seeing higher long-term Treasury yields but not higher inflation
  • Reason for rise now in 10-year yield is a bit perplexing; one story is it is higher growth expectations
  • It’s possible that higher bond yields could leave less for the Fed to do
  • If higher long-term yields are due to expectations about Fed actions, we may need to deliver
  • We will need to look at wage and inflation data for me to get comfortable we’ve done enough

This article was written by Adam Button at www.forexlive.com. Source