Fed's Kashkari: Inflation is headed down

<p>Kashkari is speaking on a moderated panel, so more comments could tick in.</p><ul><li>I'm optimistic we can shrink the Fed's balance sheet back to pre-crisis trend line</li><li>We are seeing higher long-term Treasury yields but not higher inflation</li><li>Reason for rise now in 10-year yield is a bit perplexing; one story is it is higher growth expectations</li><li>It's possible that higher bond yields could leave less for the Fed to do</li><li>If higher long-term yields are due to expectations about Fed actions, we may need to deliver</li><li>We will need to look at wage and inflation data for me to get comfortable we've done enough</li></ul>

This article was written by Adam Button at www.forexlive.com.