WS #7970

Kevin Warsh was officially sworn in as Federal Reserve Chair on May 22, with multiple sources (Al Jazeera, NBC, NYT, CNBC, MarketWatch) confirming the event. The market narrative is shifting from anticipation to action: bond traders are fully pricing in a rate hike this year, and Warsh's 'regime change' rhetoric suggests a potential shift in Fed balance sheet management. Treasury yields surged as US consumer sentiment hit a record low, reinforcing hawkish expectations. Meanwhile, geopolitical tensions persist: the Strait of Hormuz closure has cut global oil flows by over 10%, pushing Brent above $109, and the IEA signaled readiness to release more strategic reserves. Pakistan's army chief arrived in Tehran for mediation, and regional mediators are rushing to save the US-Iran ceasefire. On the corporate front, Uber is reportedly studying a full takeover of Delivery Hero, sending Uber shares lower. Waymo suspended freeway driving nationwide due to safety concerns, a negative for GOOGL. Nvidia crushed earnings but faces AI chip supply constraints. Zoom Video Communications (ZM) surged over 5% on strong Q1 earnings. Intel is eyeing Tenstorrent acquisition for AI chips. Anthropic hit a $900B valuation, with potential IPO implications. The dominant narrative is the Warsh swearing-in and hawkish rate expectations, which is ESCALATING as markets price in rate hikes. The IEA's reserve release offer acts as a counter-signal to oil supply fears, dampening the bearish energy/index signal.