Fed Transition Meets Record-Low Sentiment as Inflation Expectations Rise
Kevin Warsh starts at the Federal Reserve as households report worsening affordability pressure.
NEW YORK | Reuters reported that Kevin Warsh is taking over the Federal Reserve with inflation climbing, consumer sentiment sliding and oil prices still tied to Middle East risk.
Reuters also reported that U.S. consumer sentiment fell to a record low in May, with inflation expectations rising as gasoline and living costs weighed on households.
Additional Reporting By: Reuters Warsh; Reuters Consumer Sentiment
What this means
The next indicators are bond yields, inflation expectations and Fed language. Markets are watching whether oil-driven inflation changes the policy path.