Minn's Kashkari: Recent Tsy Moves Suggest That Fed's Framework Working

Minn Fed Pres Kashkari in a live event with the Washington Post said that a rise in real yields would concern him and could warrant a policy response, but at this point 10-Yr real yields are basically flat vs last summer's levels and thus are not presently a concern.

• Additionally, and perhaps more provocatively, Kashkari said that the recent moves in Treasury yields suggest that the Fed's new policy framework is delivering what the Fed wanted.
• These are reasonable but arguably hawkish comments from Kashkari, certainly relative to his reputation as an FOMC dove, and also relative to some lingering market expectations that the Fed might talk down long-end yields at this stage.