Does the stock market test new Fed chairs? 🏛️

Kevin Warsh was just sworn in as chair of the Federal Reserve.

The former Fed governor takes the helm as inflation rates remain stubbornly above the central bank’s 2% target and long-term interest rates have climbed to multi-year highs.

President Trump nominated Warsh after repeatedly blasting his predecessor, Jay Powell, for not aggressively lowering interest rates, calling the former chair a “numbskull” and “STUPID” for holding the rates steady. The Justice Department even launched a criminal investigation into Powell.

However, markets don’t expect rates to immediately go down under Warsh. In fact, markets expect the Fed’s next move to be an interest rate hike. It’s quite the conundrum.