Markets Brace for Warsh’s Jackson Hole Debut as Bitcoin, Gold Track Fed Signals

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Markets are on edge ahead of Federal Reserve Chair Kevin Warsh’s first Jackson Hole speech, with investors watching whether the Fed will back recent U.S. Treasury efforts to stabilize long-term bond prices.

CoinDesk reported that Warsh is set to speak at the Jackson Hole Economic Policy Symposium at 11 p.m. Korea time on Aug. 28. It will be his first Jackson Hole address since taking office in May, and investors are looking for clues on both the policy outlook and the Fed’s stance on the Treasury’s long-term bond buyback program.

Treasury Secretary Scott Bessent said on Aug. 19 that the government would more than double the size of its long-term Treasury buybacks to at least $4 billion per operation from $2 billion. The move was aimed at easing pressure from rising long-term yields after the 30-year Treasury yield climbed to its highest level since 2007.

CoinDesk said markets are focused on whether the Treasury’s expanded buybacks could eventually be followed by Fed action. If the Fed also moves to purchase Treasuries directly, that could inject liquidity into financial markets while amplifying downward pressure on long-term yields.

If Warsh instead describes the Treasury buybacks as a routine liquidity-management measure and stresses the Fed’s independence, long-term Treasury yields and the dollar could rise. CoinDesk said that could put downward pressure on Bitcoin and gold, both of which have advanced recently.