Amy Morris

Gabbard's resignation is effective June 30th.

Kevin Warsh is now officially the 17th chair of the Federal Reserve, sworn in by Justice Clarence Thomas.

Warsh takes over at a tense moment for the economy and the central bank.

President Trump introduced Warsh.

The leadership transition at the Fed is unusual.

Outgoing Chair Jay Powell has decided to remain on the Board of Governors, citing ongoing legal threats against him and the central bank.

Fed Governor Christopher Waller supports making it clear that the central bank's next interest rate move is just as likely to be an increase as a cut.

Waller says he would not rule out a future rate hike if inflation doesn't start to slow soon, and that he supports removing the easing bias language in the policy statement.

Fed Governor Waller spoke at a conference in Frankfurt, Germany.

And now bond traders are fully pricing in an interest rate hike this year, a sign of conviction in the market that incoming chair Warsh will need to move quickly to combat inflation.

It is a complete turnaround from earlier this year when President Trump's selection of Warsh to lead the Fed inspired Wall Street to bet on several rate reductions this year.

That changed after the U.S.

and Israel attacked Iran in February.

Secretary of State Marco Rubio says there was some progress during talks with Iran amid uncertainty about whether a deal will be reached or war will continue.

Rubio is in Sweden meeting with other NATO leaders where he told reporters President Trump has been feeling disappointment by NATO's lack of support for the U.S.

Iran's state media reports Iran's foreign minister says the nuclear issue will not be discussed now.

A senior UAE official tells Agence France-Presse that they think there's a 50-50 chance there could soon be a deal to free up the Strait of Hormuz.

Now, hopes for a deal between the U.S.

and Iran are fueling Wall Street optimism, driving stocks toward their longest streak of weekly gains since December of 2023.

We check those markets for you all day long here at Bloomberg.