At Jackson Hole, Federal Reserve Chair Kevin Warsh faces a delicate balancing act, according to Bank of America Corp. strategists led by Michael Hartnett. A successful speech could flatten the US yield curve, bolster risk appetite and support the dollar.

To achieve a "bull success," Warsh must reinforce his inflation-fighting credentials to keep short-term yields in check, while signaling support for Treasury Secretary Scott Bessent's efforts to contain longer-term borrowing costs, Hartnett wrote in a note.

The strategists see Warsh's remarks as pivotal for market direction, with potential to influence both monetary policy expectations and fiscal sustainability concerns.