The new US Federal Reserve chair, Kevin Warsh, faces a pivotal moment this week as he prepares to address the central bank's annual Jackson Hole symposium amid heightened anxiety in global bond markets. Investors and analysts are looking for reassurance on the Fed's commitment to controlling inflation, but Warsh has signalled he may avoid the traditional approach of hinting at future interest rate moves, instead focusing on broader themes such as productivity and demographics — a stance some economists warn could unsettle already jittery markets further.

The symposium in Jackson Hole, Wyoming, comes as selling pressure mounts in the $30tn (£22tn) US government debt market, despite Treasury Secretary Scott Bessent's pledge to at least double government bond purchases. Concerns over the inflationary impact of the US-Iran conflict and national debt surpassing $40tn for the first time have pushed long-term Treasury yields back towards their highest levels since 2007. Warsh, appointed by Donald Trump, was previously criticised for sending mixed signals in his first press conference as chair in July; markets currently expect the Fed to hold rates in September, with one or two quarter-point rises anticipated by mid-2027.