Bond market pressure raises stakes for Fed chair’s Jackson Hole speech

Treasury yields have climbed to levels not seen in two decades, increasing pressure on Federal Reserve Chair Kevin Warsh ahead of his first Jackson Hole speech. Investors want clearer signals about how the central bank plans to control inflation and set interest rates.

Markets reacted negatively after the Fed left rates unchanged in July without outlining its strategy. Rising bond yields have pushed up borrowing costs for loans and mortgages, while the Treasury has doubled its buyback operations to contain market costs.

Warsh is expected to address inflation, the Fed’s balance sheet and financial-market intervention while avoiding signals that rates may rise. Analysts warn that a vague message could further weaken confidence in the Fed and trigger another bond-market sell-off.

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