Here’s why Warsh’s Jackson Hole speech is a major event for bitcoin and gold
Investors are closely watching Kevin Warsh’s upcoming Jackson Hole speech for signals on whether the Federal Reserve will support Treasury bond buybacks. The market is concerned that such intervention could lead to fiscal dominance and increased inflation, which has historically benefited assets like bitcoin and gold.
Why it matters
The speech could determine the future of U.S. monetary policy and the potential for long-term yield control, significantly impacting global asset valuations.
“At 10:00 AM ET, Kevin Warsh gives his first-ever Jackson Hole speech. Huge volatility ahead,” one popular crypto-related X handle posted early Monday.
That framing is fair given what is at stake: whether the Fed will be willing, if necessary, to support the U.S. Treasury’s $4 billion bond-buyback plan to help contain longer-dated Treasury yields, the benchmark for borrowing costs across the economy.
On Aug. 19, Treasury Secretary Scott Bessent said the government would at least double its buybacks of longer-dated Treasury notes, raising each operation from $2 billion to at least $4 billion beginning Sept. 9 through Nov. 4. The announcement came as the 30-year yield hovered at its highest level since 2007 and posed a challenge to both fiscal management and valuations of risk assets.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in