US Markets Reel from Warsh's Rate Ambiguity as Korean Stocks Plummet

The US markets sold off sharply after new Fed Chair Kevin Warsh's ambiguous stance on interest rates. Warsh is caught between his mission to bring down inflation and President Trump's desire for low interest rates.

Warsh chose not to join the three dissenters who opposed raising rates, but also did not provide any forward guidance, which disappointed the markets. Bond yields are at multi-year highs, creating a new headache for investors.

The South Korean KOSPI index was the biggest story of the week, with retail investors losing nearly $40 billion due to their aggressive bets on leveraged products. The country's finance minister apologized for the crisis and imposed stricter regulations.