Federal Reserve Bank of Minneapolis President Neel Kashkari said on Monday that he sees no need to increase U.S. interest rates, given the "flashing yellow" signal from the bond market and the fact that the economy is not in his view yet at full employment.

The Fed last week raised U.S. interest rates for the third time this year and most policymakers forecast a likelihood of at least four more rate hikes by the end of next year. Kashkari is not a voter this year on monetary policy.