Kevin Warsh takes US Fed chair post, signals hawkish stance
Kevin Warsh just stepped in as the new US Federal Reserve chair, and he's already making waves.
He's sticking with high borrowing costs for now, but his hawkish tone hints at a possible rate hike later this year if inflation keeps climbing.
Inflation has hit 4.2% in May, marking the third month in a row it's gone up, so Warsh is definitely entering at a tricky time.
Warsh drops forward guidance, markets react
The US is dealing with rising energy prices (thanks to the ongoing U.S.-Iran conflict), plus higher food and housing costs, all pushing inflation up.
After Warsh's announcement, stocks dropped and bond yields jumped as investors got nervous about less transparency: he dropped forward guidance and steered clear of participating in the dot-plot submission.
To tackle inflation, he set up five task forces to review Fed operations and keep things steady.
U.S.-Iran peace deal may ease inflation
A new U.S.-Iran peace deal might help calm energy prices and ease some inflation pressure.
Investors are watching closely to see how this plays out for the economy going forward.