Transcript: Neel Kashkari, Minneapolis Fed president and CEO, on "Face the Nation with Margaret Brennan," Aug. 23, 2026

Key Points:

• Neel Kashkari emphasized that while U.S. Treasury yields are high compared to recent history, they are not unprecedented historically, and the Treasury market remains functional without signs of dysfunction.
• Kashkari highlighted multiple factors influencing Treasury yields, including inflation outlook, AI investment, government borrowing, and economic growth, stressing that the Federal Reserve's primary focus is controlling inflation.
• He acknowledged the debate about a potential structural economic shift due to rising borrowing costs but noted uncertainty, suggesting bond market optimism about productivity growth could be a factor.
• Kashkari deferred fiscal responsibility for addressing the national debt to the Treasury and Congress, reaffirming the Fed's role in managing inflation and monetary policy independently.
• Regarding inflation and interest rates, Kashkari indicated openness to raising rates depending on incoming data, citing geopolitical tensions in the Middle East as a complicating factor for inflation control, and expressed concern about persistent inflation pressures.