Transcript: Neel Kashkari, Minneapolis Fed president and CEO, on "Face the Nation with Margaret Brennan," Aug. 23, 2026

On August 23, 2026, Neel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis, appeared on Face the Nation with Margaret Brennan to discuss the state of the American economy. Kashkari noted that while the country's debt has reached $40 trillion, he did not perceive an immediate crisis. He explained that while Treasury yields are currently high compared to recent history, they are not excessively so in the broader context of American economic history.

Kashkari attributed the high yields to various factors, including inflation, government borrowing, and economic growth. He emphasized that the Federal Reserve's primary concern is inflation and its goal of bringing it back down to a 2% target. He stated that the Federal Reserve's role is to support the overall functioning of the Treasury bond market, which is currently operating as intended.

Regarding the concerns raised by investors like Mohamed El-Erian about a potential shift in global economic conditions, Kashkari acknowledged the complexity of the situation. He noted that various factors, such as the stock market's performance and optimism about artificial intelligence, are influencing market dynamics. However, he stressed that the Fed's primary focus remains on controlling inflation through the federal funds rate.

When asked about the potential for intervention in addressing the debt situation, Kashkari reiterated that the responsibility for managing the debt lies with the Treasury Department and the broader fiscal policy decisions made by Congress. He emphasized that the Federal Reserve's role is to maintain price stability and support economic growth in line with its dual mandate.