All eyes are on Jackson Hole, where Federal Reserve Chair Kevin Warsh faces one of the trickiest balancing acts of his young tenure.
Inflation remains stubborn, energy prices are rising again and central banks around the world are turning increasingly hawkish. But in the US, the picture is complicated by the Treasury’s push to tame longer-term yields through bigger bond buybacks.
A hawkish Warsh could send short-term yields and the US dollar higher, while potentially anchoring inflation expectations and limiting pressure on the long end. A more cautious or ambiguous message could weaken the dollar, revive selling in longer-dated Treasuries and raise fresh questions about Fed credibility.
Meanwhile, US equity returns look far less spectacular for international investors once currency depreciation and inflation are taken into account!
Watch the full episode to find out more!
Intro1:11 Market update: tech vs the rest, oil and yields
0:00 All eyes on Kevin Warsh’s first Jackson Hole speech!
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