Since taking office in May this year, Federal Reserve Chair Kevin Warsh has opted to maintain interest rates at two consecutive Federal Open Market Committee (FOMC) meetings. Warsh has adopted a cautious stance despite inflation rates (as of June, headline inflation at 3.5% and core inflation at 2.6%) persistently remaining above the Federal Reserve's long-term target of 2%, and a strong labor market (unemployment rate at 4.2%). He has pledged "institutional change" and established five working groups to review and improve the Federal Reserve's operations, including communication, the balance sheet, data processing, assessing the impact of new technologies, and understanding inflation drivers. The findings of these working groups are not expected until the end of this year. Analysis suggests that Warsh's cautious strategy may mean the Federal Reserve will keep interest rates unchanged for longer than market expectations, delaying any rate hikes until the working group results are released. This could reduce the headwind from rate hikes for the market this year, which would be beneficial for the stock market, but it has also raised concerns about the Federal Reserve's failure to effectively curb inflation, leading to the recent rise in the 10-year U.S. Treasury yield to 4.74%.