Powell's debut triggered a violent shake-up in the US bond market, with traders betting heavily on the Fed's rate hike.

Kevin Wash drew the attention of the bond market in a short amount of time. Traders sold short-term US bonds, leading to the highest yield increase in over a year. Futures traders are betting that the interest rates will be raised as early as next month, following Wash's strong emphasis during his first press conference as Fed chairman that the central bank will not tolerate high inflation. "The message we are getting from policy makers is very clear, that interest rates will not be decreasing in the short term," said Kate Moore, Chief Investment Officer at Citi Wealth. Futures traders are already pricing in expectations of a 25 basis point rate hike before October, just before the mid-term elections, or possibly even sooner. The price of 30-year US Treasury bonds is rising, pushing down yields, indicating market confidence that inflation will eventually be controlled in the long term. These trends mark a significant shift in market expectations for interest rate movements in the past few months, even as oil prices fall and the US and Iran are getting closer to ending the war.