Wash makes his debut at the Jackson Hole Conference this Friday, with Wall Street expecting him to deliver "pain relief" for US Treasuries.

Fed Chair Walsh will attend the Jackson Hole Economic Symposium this Friday for the first time in his capacity as chair. Markets are awaiting his speech to clarify the Fed’s policy framework following sharp cuts to forward guidance, in a bid to ease recent tensions in the U.S. Treasury market. Previously, Walsh scaled back guidance on future interest rate paths in policy communications and even hinted at a possible adjustment to the inflation target, sparking market concerns over the Fed’s transparency and policy credibility. A survey shows over 60% of surveyed economists believe the Fed’s credibility crisis has been a major driver of the surge in long-term U.S. Treasury yields. Meanwhile, Treasury Secretary Bessent is attempting to lower borrowing costs by expanding the scale of longer-term U.S. Treasury repurchase operations, while Walsh appears to tolerate the rise in long-end yields—this has drawn market attention to policy divergences between the Federal Reserve and the U.S. Treasury. Analysts warn that if Walsh fails to release clear policy signals on Friday, the outcome could be seen as "disappointing" by markets, further intensifying sell-offs in long-term U.S. Treasuries. If he can clearly define potential inflationary pressures, it is expected to reduce term premiums and ease bond market pressure.