Fed's Kashkari: Higher neutral rate means monetary policy may not be as tight as thought

<ul><li>Possibly higher neutral rate means Fed can take more time to assess upcoming data before starting rate cuts</li><li>That will entail "less risk" to the economic recovery</li><li>Core inflation making "rapid progress" towards Fed's target</li><li>But economic data not "unambiguously positive"</li><li>There are some signs of weakness including rising consumer delinquencies</li><li><a href="https://www.minneapolisfed.org/article/2024/policy-has-tightened-a-lot-how-tight-is-it" target="_blank" rel="nofollow">Full remarks</a></li></ul><p>Treasury yields are rising further to the highs for the day now. 10-year yields are up some 8 bps to 4.11% and that is keeping the dollar in the driver's seat at the moment.</p>

This article was written by Justin Low at www.forexlive.com.