Fed’s Kashkari: US Treasury Market Still Functioning Normally

Kashkari's reassurance matters less for what it says about Treasuries than for what it signals about the Fed's threshold for intervention: officials are comfortable describing volatility as contained rather than treating it as dysfunction. For crypto and RWA markets, which increasingly price off the same rate and liquidity backdrop, that framing implies no imminent policy response to soothe risk assets. The open question is whether that calm assessment holds if volatility persists, and whether the Fed's definition of "normal functioning" shifts.