Finance

Kevin Warsh was sworn in as the new Federal Reserve Chair on Friday, inheriting an economy where inflation has rebounded to 3.8%. This transition has led markets to price out immediate rate cuts, with officials now considering potential hikes to reach the 2% target.

U.S. Treasury yields pulled back from recent highs on Friday, with the 10-year note dipping to approximately 4.57%. Analysts noted the return of a normal yield curve, where longer-term maturities yield more than shorter ones, typically signaling expectations for future economic growth.

The energy sector remains the top market performer this year with a 21.5% gain, driven by high oil prices resulting from the conflict with Iran. In contrast, the technology sector has struggled with a 3% year-to-date decline, though defensive healthcare stocks have recently provided market stability.