Kashkari's comments push back against any narrative that surging long-end yields reflect market dysfunction, which should ease some of the term premium anxiety that has crept into rates trading in recent sessions. With the 10-year sitting near 4.73% and the 30-year close to its highest level since 2007, the message that liquidity remains intact is likely to matter more to fixed income desks than the yield level itself. His continued inflation concerns, without a firm commitment to push for a September hike, leave the meeting outcome genuinely live rather than pre-signalled, keeping rate-sensitive assets exposed to incoming data prints between now and then. Attention is also shifting toward new Fed Chair Kevin Warsh's Jackson Hole remarks on Friday, which markets are likely to treat as the more consequential policy signal than any single regional president's Sunday show comments.---Kashkari calls the Treasury market healthy even as yields climb, while keeping the door open to further inflation worries heading into September.Summary:Kashkari said Sunday on CBS's Face the Nation that rising Treasury yields do not concern him and are unlikely to affect Fed policy deliberations.He said the Treasury market is functioning properly with adequate liquidity, letting the Fed focus on the federal funds rate as its main inflation tool.The 10-year Treasury yield ended last week near 4.73%, while the 30-year stayed close to its highest level since 2007.Kashkari noted that although yields are high relative to recent history, they were significantly higher in the 1990s.The Fed held rates steady in July for a fifth straight meeting, with Kashkari one of three officials who dissented in favor of a quarter-point hike.Kashkari repeated his inflation concerns but stopped short of committing to push for a rate hike at the September meeting, ahead of new Fed Chair Kevin Warsh's Jackson Hole speech on Friday.Federal Reserve Bank of Minneapolis President Neel Kashkari played down concerns over the recent rise in US Treasury yields on Sunday, telling CBS's Face the Nation that the increase is unlikely to shape the central bank's monetary policy deliberations. Kashkari said there is every indication the Treasury market is functioning as it should, with trades taking place and sufficient liquidity in place, allowing policymakers to keep their focus on the federal funds rate as the primary lever for bringing inflation back to target.His comments came as yields across the curve climbed last week, with the benchmark 10-year Treasury ending near 4.73% and the 30-year remaining close to its highest level since 2007. Kashkari acknowledged that yields are elevated relative to recent history but noted they were meaningfully higher during the 1990s, framing the current level as high but not historically extreme.The remarks arrive ahead of the Fed's next policy meeting in September. Officials left interest rates unchanged in July for a fifth consecutive meeting, with Kashkari among three policymakers who dissented in favor of a quarter percentage point rate increase, citing concerns over persistent inflation. Speaking Sunday, he repeated those concerns but stopped short of committing to another dissent or a renewed push for a hike, saying more data is needed before the next meeting and that he does not want to prejudge the outcome. He added that he is not currently confident inflation is heading back to target within a short period.Markets this week are also turning their attention to new Fed Chair Kevin Warsh, who is scheduled to deliver keynote remarks Friday at the central bank's annual symposium in Jackson Hole, Wyoming. Warsh's comments are likely to carry more weight for the policy outlook than Kashkari's Sunday remarks, particularly given the currency, and the two data points together set up September's meeting as a genuine decision point rather than a formality, with the yield backdrop and inflation trajectory both still very much in play. This article was written by Eamonn Sheridan at investinglive.com.