Stephany Griffith-Jones, former vice chair of the Federal Reserve: "Powell will have less influence than he did as chair, but he will help foster a more cautious approach" - InsuranceNewsNet

Markets have increased the probability of a Federal Reserve rate hike following the latest inflation report.

Bond yields surged to May 2025 highs, driven by rising oil prices and inflation data, rattling markets.

Inflation risk dampened investor enthusiasm, leading to a tumble in both stock and bond markets.

Despite Kevin Warsh's known preference for lower interest rates, the Federal Reserve may maintain a different, potentially more hawkish, policy stance.

Kevin Warsh faces the Fed's biggest test as Trump pushes for rate cuts, but inflation persists.