Bloomberg News Now: Trump: Fed’s Warsh Should "Do His Own Thing,” Hope for Iran Deal, More

Amy Morris

Kevin Warsh is now officially the 17th chair of the Federal Reserve, sworn in by Justice Clarence Thomas. Warsh takes over at a tense moment for the economy and the central bank.

Donald Trump

I want Kevin to be totally independent and just do a great job. Don't look at me. Don't look at anybody. Just do your own thing and do a great job.

Kevin Warsh

I intend to fill the role of chairman with energy and purpose, faithful to the mission and the very best traditions of the Fed. While I'm not naive about the challenges we face, I believe these years can bring unmatched prosperity that will raise living standards for Americans from all walks of life.

Amy Morris

Outgoing chair Jay Powell deciding to remain on the board of governors, citing ongoing legal threats. Governor Christopher Waller supports making it clear that the central bank's next interest rate move is just as likely to be an increase as a cut. Waller says he would not rule out a future rate hike if inflation doesn't start to slow soon, and that he would support removing the easing bias language in the policy statement.

Christopher Waller

I believe inflation expectations start to become unanchored. I would not hesitate to support an increase in the target range for the federal funds rate, but at this point, that action seems to be premature.

Amy Morris

Bond traders are fully pricing in an interest rate hike this year, a sign of conviction in the market that incoming Chair Warsh will need to move quickly to fight inflation. It's a complete turnaround from a year before when President Trump's selection of Warsh to lead the Fed inspired Wall Street to bet on several rate cuts this year. That changed after the U.S. and Israel attacked Iran in February.

Amy Morris

The S&P 500 up 6/10 of a percent. Nasdaq up 6/10 of a percent. The Dow up 8/10 of a percent. The ten year Treasury yield at 4.57%. And the two year yield at 4.12%. WTI crude now at $97 a barrel. Brent crude just topping $103 a barrel.

Amy Morris

U.S. consumer sentiment fell in May to a record low 44.8 because of the war with Iran, weaker than all projections. 57% of consumers mentioning high prices are eroding their personal finances.

Joanne Hsu

Consumers had already been feeling pretty negative about the impact of gas prices, the Iran War. But now they're really starting to worry that the pain of this is going to persist into the long run.

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