Central Bank Chiefs Face Jittery Backdrop at Jackson Hole

As the world's top central bank chiefs gather in Jackson Hole next week, they will face a jittery backdrop six months into the Iran war and with bond markets rattled by a selloff in long-dated U.S. debt that prompted U.S. Treasury intervention.

Fed Chairman Kevin Warsh has spent his first weeks as chair focusing on long-term structural issues facing the U.S. economy, but investors are craving guidance on whether rates are headed higher.

Warsh may face a choice between expounding on his ideas for reforming the central bank or sticking to the nuts and bolts of monetary policy, which could prove challenging given the current market conditions.

Bond markets have been rattled by a selloff in long-dated U.S. debt, with Brent crude prices grinding higher and adding to concerns about global inflation.