Fed's Kashkari Says Treasury Market Still Functioning Properly, but Iran War Keeps Inflation Risk Alive

According to Ecoiran, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis and one of three Fed officials who had called for a rate hike at the central bank's previous meeting, said on Monday, August 24, 2026 (2 Shahrivar 1405) that the US Treasury market is still functioning properly. He added, however, that he remains unsure inflation will return to the Fed's 2 percent target in the near term.

Kashkari pointed to the Iran war and persistently high energy prices, saying these factors could intensify inflationary pressure in the US economy. The remarks came as the 10-year US Treasury yield has recently traded near its highest level in several months.