Amy Morris

I'm Amy Morris and this is Bloomberg.

News when you want it.

With Bloomberg News Now, I'm Amy Morris.

Director of National Intelligence Tulsi Gabbard is resigning to help her husband confront a bone cancer diagnosis.

President Trump says Aaron Lucas, principal deputy director of national intelligence, will serve as acting director.

Gabbard is a veteran of the Iraq war.

She continues to serve as an officer in the Army Reserve.

Her skepticism of overseas wars continued when she became Trump's intelligence director.

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.