Mr. Kevin Warsh has officially assumed the position of Chairman of the U.S. Federal Reserve (Fed) amid a financial market sending strong warning signals. The rising bond yields are a message from investors indicating that the Fed needs to prioritize tightening monetary policy to combat inflation, rather than following a rate-cutting path as expected by President Donald Trump.

In the week before Mr. Warsh's swearing-in, the yield on 30-year U.S. Treasury bonds at one point exceeded 5.19%, the highest level recorded since 2007. The 10-year yield also reached its highest in over a year, reflecting growing concerns about inflation worsening due to the impact of the conflict between the U.S. and Iran.