When Federal Reserve Chairman Kevin Warsh delivers his speech at Jackson Hole, Asia markets will have closed up shop for the day. But what he says, and what he doesn't, will likely set the tone for equity, bonds and currencies next week.
Here's what to watch:
EXPECTATION VS REALITY: Market participants looking for a firm signal on when the Fed will hike next shouldn't hold their breath, analyst say, expecting Warsh to remain tight-lipped on near-term rate guidance.
"With no Q&A typically attached to the Fed chair's Jackson Hole address, there is limited scope for markets to press Warsh for a clearer September signal," said OCBC's Christopher Wong.
A lack of clarity on that front could drag sentiment in equities, but ANZ thinks it is unlikely to move the policy needle for Asian central banks. Still-high energy prices, sticky inflation and weakened external balances all point to a continued tightening bias.
