Markets react to Kevin Warsh’s debut as Federal Reserve chair, with traders increasing bets that the Fed will raise interest rates as soon as next month. According to Bloomberg reports, Warsh’s initial remarks signal that the central bank will not tolerate persistently high inflation. The shift in expectations is reinforced by projections and messaging from individual Fed members, which are described as consistent with a more hawkish stance. In coverage of the debut, Bloomberg highlights that the tone set by Warsh—especially regarding inflation tolerance—leads to a rapid change in trading behavior. Economists interviewed in the articles frame the move as a repricing of the path of policy rates, tied to the expectation that Warsh’s approach will shape the Fed’s next policy decisions. Overall, the reports describe a market response that centers on timing and the expected direction of policy, rather than a single new policy action. The key point across sources is that Warsh’s early communications increase confidence among traders that rate hikes are likely soon.