Global central bankers gather in Jackson Hole

Seemingly divergent policies from the US Federal Reserve and Treasury will be a key focus at a gathering of global central bankers, with bond yields nearing record highs and little respite on the horizon from dizzying global government debt levels.

Investors will be watching the annual talks in Jackson Hole, Wyoming, for insight into Fed Chair Kevin Warsh’s inflation outlook; questions are growing over the central bank’s priorities after the Treasury unveiled a surprise bond-buyback program ostensibly designed to corral long-term bond yields.

Warsh, by contrast, faces pressure to raise interest rates in order to bring down inflation, which is well above the Fed’s 2% target. “Warsh is stuck,” ABN Amro said. “Being silent does not seem like an option.”