Powell Sworn in as Federal Reserve Chair

BlockBeats News, May 23rd, Kevin Wash was sworn in as the 17th Chair of the Federal Reserve, marking the beginning of the Fed's "Wash Era." He succeeded Powell for a 4-year term. U.S. President Trump presided over the swearing-in ceremony of Kevin Wash as Chair of the Federal Reserve at the White House. Wash stated, "Thank you, Trump. We are at a critical moment. The coming years will bring unprecedented prosperity. Inflation can be reduced, and the economy will grow strongly. I will lead a reform-oriented Fed."

Amid the U.S.-Iran conflict boosting energy prices, U.S. bond sell-offs, and concerns about the fiscal deficit, the U.S. 30-year bond yield rose to its highest level since 2007, and market concerns about inflation continued to rise. According to CME's "FedWatch" data, the market believes that the prospects for a rate cut after Wash takes office remain dim, with a 96.6% probability of keeping rates unchanged in June, a 3.4% probability of a 25 basis point rate hike, and no possibility of a rate cut.

Trump, who had been persistently calling for a rate cut, recently changed his tune to say "let Wash decide on rates." However, just last month, Trump publicly stated that if Wash did not cut rates immediately after taking office, he would be disappointed. Analysts believe that this statement indicates that the White House has begun to "leave room for maneuver" for not cutting rates in June.