Jerome Powell was sworn in as chairman of the Federal Reserve, and at this moment, Wall Street no longer fantasizes about a rate cut.

Local time on Friday, May 22, Kevin Warsh was sworn in as the new chairman of the Federal Reserve in Washington. During the swearing-in ceremony, Warsh stated that he would lead a "reform-oriented" Federal Reserve, emphasizing that the Fed should fulfill its responsibilities of controlling inflation and achieving full employment with "independence, clear judgment, and a firm stance." The ceremony did not take place at the Federal Reserve headquarters as usual, but was held at the White House - the last time was Greenspan's inauguration ceremony. Warsh said, "I intend to fulfill the duties of the chairman with abundant energy and clear objectives, like Greenspan." As Warsh assumes office, financial markets have further raised expectations for the Fed's future tightening of monetary policy. The "Fed Watch" tool at the Chicago Mercantile Exchange shows that the market believes the probability of the Fed raising rates within the year has reached close to 70%. At the beginning of the year, investors had originally expected the world's most influential central bank to cut rates several times. Currently, conflicts in the Middle East have driven international energy prices to sharply rise, directly exacerbating domestic price pressures in the United States. Data released last week shows that the U.S. CPI rose by 3.8% year-on-year in April, the highest level since June 2023. U.S. President Trump stated at Warsh's swearing-in ceremony that he hoped Warsh would become a "completely independent" chairman. However, Trump also mentioned, "We also hope to control inflation but not to hinder economic prosperity." Earlier in the day, Federal Reserve Board member Christopher Waller expressed agreement with the views of most central bank officials that the Fed should remove the "accommodative bias" from its policy statement. However, Waller also emphasized that removing the "easing bias" does not mean that "raising rates should be considered in the near term." He added that the Fed would only consider raising rates when inflation expectations "loose their anchor." Mid-June, Warsh will have his first policy meeting since taking office. TS Lombard economist Steven Blitz said, "Given the rising risks of inflation, if there is no rate hike in June, it is actually equivalent to an accommodative policy." This article is translated from "Cai Lian She" by Zhao Hao, GMTEight Editor: Li Cheng.