Goldman Says Oil May Matter More to Markets Than Warsh’s Jackson Hole Speech

Markets may need to pay closer attention to crude oil prices than to Federal Reserve Chair Kevin Warsh’s keynote speech at Jackson Hole, according to an analysis published ahead of the event.

Goldman Sachs strategist Rich Privorotsky said investors may be too focused on Warsh’s remarks while underestimating the effect of oil prices on inflation and financial markets, crypto media outlet BlockBeats reported on August 28.

A decline in oil prices could lower inflation expectations and ease the burden on consumers. It could also push down long-term US Treasury yields. That, in turn, would reduce valuation pressure on equities and could support risk assets, including cryptocurrencies.

If Warsh’s comments do not deviate materially from the Fed’s existing policy stance, the Jackson Hole meeting is unlikely to become a major event risk for markets, Privorotsky said. Warsh’s keynote speech is scheduled for 11 p.m. Korea time on August 28.