Jackson Hole Jitters: Markets on Edge Ahead of Warsh's Keynote Speech

Market watchers are bracing for the Federal Reserve's annual economic policy symposium in Jackson Hole, Wyoming, as long-term borrowing costs hit a near-two-decade high last week. The event will feature Fed Chair Kevin Warsh's keynote speech on Friday.

The U.S. Treasury Department announced last week that it would increase its buybacks of long-term government debt, aiming to at least double the maximum size of its repurchasing operation to $4 billion from Sept. 9.

This move was seen by some investors and analysts as an effort to lower U.S. government bond yields, but others criticized it, saying it could put pressure on the economy, complicate the Federal Reserve's inflation fight, and intensify political pressure on the independent central bank.

Inflation remains above target, with data published Wednesday showing the personal consumption expenditures price index, the Fed's preferred inflation gauge, rose 3.7% in the year to July.