Select Fed Kashkali: The U.S. Treasury Market is still functioning

According to news on 23 August, the Federal Reserve Kashkali diluted the market ' s concern about the rising rate of return on United States Treasury debt, stating that the market was working well and that the recent surge was unlikely to influence the discussion of monetary policy. On Sunday, Kashkali stated: “There are indications that the U.S. Treasury market is functioning normally, transactions are going well and markets are liquid enough, so we can use federal fund interest rates as the main policy tool for reducing inflation.” Last week, the rate of return on the United States Treasury debt rose for all durations, with the rate of return on the base 10-year period being around 4.73 per cent. The 30-year rate of return on national debt remained close to its highest level since 2007. Kashkali indicated that while the current rate of return on public debt was higher than recent historical levels, it was much higher in the 1990s. “We need more data, but I do not want to prejudge the outcome of the next meeting”, he said, “But I do not think that inflation will return to the target level in the short term.” Kim Xian