Warsh's Jackson Hole Debut Triggers Market Jitters Over Fed's Next Move

Markets are bracing for Federal Reserve Chair Kevin Warsh's first Jackson Hole speech as investors await clues on policy and the Fed's stance on Treasury buybacks.

The speech, scheduled for August 28 at 11 p.m. Korea time, marks a crucial moment in the market's anticipation of potential Fed action to stabilize long-term bond prices.

Treasury Secretary Scott Bessent recently announced an expansion of the government's long-term Treasury buybacks, which could eventually lead to similar actions by the Fed.

Investors are divided on what Warsh's speech will reveal: some expect him to back the Treasury's efforts and inject liquidity into financial markets, while others believe he will describe the buybacks as routine measures and stress the Fed's independence.

If the latter scenario plays out, long-term Treasury yields and the dollar could rise, potentially putting downward pressure on Bitcoin and gold, which have recently advanced in value.