Warsh's Jackson Hole Speech Seen as Make-or-Break Moment for Yields

Kevin Warsh's Jackson Hole speech has the potential to impact US yields and risk appetite, according to Bank of America Corp. strategists led by Michael Hartnett.

The speech could lead to a flattening of the US yield curve if Warsh achieves his 'bull success' by reinforcing his inflation-fighting credentials while signaling support for Treasury Secretary Scott Bessent's efforts to contain longer-term borrowing costs.

Warsh will need to strike a delicate balance between keeping short-term yields in check and supporting efforts to reduce long-term borrowing costs, Hartnett wrote.