Kevin Warsh takes over as Fed chairman as rising bond yields and oil prices impact global markets.
Kevin Warsh began his term as Fed chairman in May, succeeding Jerome Powell after eight years. The new head of the central bank has pledged to implement reforms and has established task forces to review inflation frameworks and balance sheet policy. The bond market is currently reacting to Warsh's leadership as the 10-year US Treasury yield rose to 4.71% on Thursday. This increase is driven by persistent inflation fears and rising oil prices following the start of the war with Iran. Brent crude reached $100 per barrel, contributing to higher borrowing costs for consumers, including a 30-year mortgage rate of 6.58%. Investors are also weighing the impact of government deficits and the risk of inflation. Defense Secretary Pete Hegseth noted that the conflict with Iran has already cost the United States $37.5 billion. While markets remain rattled by these factors, traders are closely monitoring the Strait of Hormuz and the Red Sea for signs of de-escalation.