Waller's Jackson Hole Speech Set to Spark Market Volatility

The Federal Reserve's annual economic policy symposium in Jackson Hole, Wyoming, is set to take place next week. The event will feature keynote speeches from global economists and central bank officials, with a focus on financial innovation and its impacts on payments and policy.

Federal Reserve Chairman Waller will deliver his first speech at Jackson Hole since taking office as Fed Chairman on August 28 at 10 AM Eastern Time. However, it remains unclear whether his speech will focus on the macroeconomic 'big picture' or provide guidance for the policy path from September to December.

Goldman Sachs reports that historically, keynote speeches at Jackson Hole often amplify volatility in the foreign exchange market. Waller's uncertainty about the content of his speech increases the market's sensitivity to changes in wording.