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

Federal Reserve Officer Kashkali stated that the United States Treasury debt market was still functioning, diluting the market ' s concern about the rising rate of return on government debt. He noted that market liquidity was sufficient and that the recent surge in yield rates was unlikely to influence the discussion of monetary policy. Kashkali mentioned that while the return on the base 10-year national debt was around 4.73 per cent, the return on the 30-year national debt remained close to its highest level since 2007. He indicated that while the current rate of return was relatively high compared to historical levels, there was still a gap compared to the 1990s. Kashkali stressed the need for more data to judge future policy trends, but did not believe that inflation would return to targeted levels in the short term。