New Fed chair Kevin Warsh signals rates to stay high as inflation hits 4.2% in May

New Federal Reserve Chair Kevin Warsh struck a hawkish tone in his first policy statement, saying borrowing costs will stay elevated for longer as sticky inflation persists, with May CPI at 4.2%. He also dropped the dot plot and forward guidance, a shift that pushed Treasury yields higher and sent U.S. equities lower. The stance is seen as a headwind for gold and is shaping near-term oil price drivers, even as tensions around the Strait of Hormuz have eased.