BOJ and Fed face critical test as market pressure rises on rates

TOKYO -- Central banks in the U.S. and Japan will face a critical test this week as investors ramp up pressure on policymakers to stay ahead of inflation and convince markets they can keep pace with shifting expectations.

Bank of Japan Gov. Kazuo Ueda and Federal Reserve Chair Kevin Warsh are caught between inflation and political pressure. (Nikkei montage/Source photos by Shintaro Ino, AP and Akira Kodaka)

Future policy path in focus as inflation fears reignite and bonds sell off globally