The following is the transcript of an interview with Neel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis that aired on "Face the Nation with Margaret Brennan" on Aug. 23, 2026. MARGARET BRENNAN: For more on what's next for the American economy, we're joined by Neel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis. Welcome back to Face the Nation.
NEEL KASHKARI: Thanks for having me, Margaret. MARGARET BRENNAN: So when we spoke back in May, I asked you about the debt level America has. You said you didn't see an immediate crisis brewing, but at some point, this is going to become a problem.
We just hit $40 trillion. Are we at the point where this is a problem? : Well, Margaret, if you look at the Treasury yields, yields are high, 4.7% for example, on the 10-year Treasury. They're high relative to recent history.
They're not high relative to more longer American history. In the early 2000s, the 10-year Treasury and the 30-year Treasury were around these levels. In the 90s, they were meaningfully higher than they are now, and there's no sign of Treasury market dysfunction or breaking down in financial markets.
There are a lot of different factors that go into those Treasury yields. Inflation, and the outlook for inflation is one of those factors, that's the Fed's job. But there are many other factors, like, it's the AI investment, government borrowing, economic growth.
All of those end up going together to set these long-run Treasury yields. MARGARET BRENNAN: But we saw this bond sell-off. We saw extraordinary action by the Treasury Secretary Scott Bessent to intervene.
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