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Neel Kashkari Discusses Record $40 Trillion U.S. Debt and Persistent Inflation on 'Face the Nation'

Minneapolis Federal Reserve President and CEO Neel Kashkari joined Margaret Brennan on 'Face the Nation' to address the U.S. economy's current state. The country's debt reached a record $40 trillion last week, contributing to high Treasury yields and market uncertainty. Kashkari noted that while yields are high relative to recent history, the Treasury market remains functional, allowing the Federal Reserve to focus on its primary mandate of returning inflation to a 2 percent target. Kashkari highlighted that geopolitical factors, such as the conflict with Iran, are significant drivers of inflation. He also discussed the impact of trade tensions with Canada, noting that supply shocks from tariffs can extend inflationary pressures. The discussion emphasized that while the Fed manages inflation, the long-term sustainability of the debt trajectory depends on fiscal policy decisions made by the executive branch and Congress. Kashkari expressed some uncertainty regarding the speed of inflation's return to target, noting that more data is required before making definitive policy shifts.

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