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