Dollar and bond markets 'on edge' ahead of Jackson Hole as Bessent's market intervention piles pressure on Warsh

Federal Reserve Chairman Kevin Warsh speaks during a news conference at the William McChesney Martin Jr. Federal Reserve Board Building in Washington, July 29, 2026.Brendan Smialowski | Afp | Getty ImagesCentral bankers, policymakers and economists will gather in Jackson Hole, Wyoming, on Thursday for the Federal Reserve Bank of Kansas City's annual economic policy symposium. Markets are closely monitoring the event for Fed Chair Kevin Warsh's keynote speech after long-term borrowing costs hit a near-two-decade high last week and the Treasury's bombshell bond market intervention.Warsh is due to speak at the event on Friday, with market watchers expecting what he says — or doesn't say — to shape investors' expectations for Fed policy and potentially trigger trading activity. Last week, the U.S. Treasury Department announced it would increase its buybacks of long-term government debt, saying it would at least double the maximum size of its repurchasing operation to $4 billion from Sept. 9. The move, which some investors and analysts interpreted as an effort to lower U.S. government bond yields, helped curb a sell-off that had gripped bond markets in the preceding days. That stress in...