Kevin Warsh has officially been sworn in as the chairman of the US Federal Reserve, signalling a shift towards a 'reform-oriented' leadership approach.Financial markets are anticipating an interest-rate hike later this year, reflecting expectations that Warsh will act decisively to curb inflation.

Disclosures reveal that Warsh's assets exceed US$192 million, though actual wealth is likely higher due to reporting categories with broad ranges.Earlier in the year, President Trump's appointment of Warsh had prompted Wall Street to speculate on several rate cuts in 2026.

However, geopolitical tensions, including US and Israeli strikes on Iran and disruptions at the Strait of Hormuz, have driven up global energy prices, contributing to rising consumer costs.In April, the US recorded a 12-month Consumer Price Index increase of 3.8 per cent, the highest since 2023, reflecting sharp rises in energy and food prices.This economic environment increases pressure on central banks to respond swiftly.The market has already adjusted expectations, with interest-rate swaps implying at least a 25-basis-point increase by the end of 2026.Warsh's leadership comes at a critical time as policymakers navigate inflation, global instability, and market volatility.