Warsh Faces First Test at Jackson Hole

The Jackson Hole Economic Policy Symposium has kicked off for a three-day run in Wyoming, USA. The meeting brings together central bank governors and economic experts from around the world to discuss global financial markets.

From South Korea, Bank of Korea Governor Rhee Chang-yong is attending. All eyes are focused on Federal Reserve Chair Kevin Warsh's keynote speech scheduled for 8:00 AM local time on the 28th.

This marks Chair Warsh's debut at Jackson Hole since taking office in May, leading market assessments that his honeymoon period has ended and he now faces a full-fledged policy test. His speech is expected to diagnose the current high inflation rate and address rising energy prices driven by the U.S.-Iran war and a trade war with Canada.

Tension in the bond market has escalated due to the widening U.S. fiscal deficit, increased Treasury supply, and the artificial intelligence investment boom. Markets are watching closely to see how Chair Warsh evaluates the rise in long-term interest rates and views the impact of the Treasury's buybacks on financial market conditions.