Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, stated that the Federal Reserve's monetary policy might not be as tight as previously assumed, suggesting a possible recalibration of the 'neutral' policy stance. This follows Fed Chair Jerome Powell's comments on inflation not being under control and the need for more positive data before considering interest rate reductions. Kashkari highlighted the economy's resilience, particularly in construction and housing markets, while acknowledging areas of concern such as auto loan and credit card delinquencies. Following these remarks, market expectations for interest rate cuts have decreased, with a notable impact on the iShares 20+ Year Treasury Bond ETF Trust (TLT), which fell 2%.