Investors read the vibe as surprisingly hawkish.

Kevin Warsh faces a renewed inflation surge, monetary hawks on the policy committee and big questions about how the major changes he advocates in how the Fed works will play out.

Kevin Warsh's debut as Fed chair signals a shift toward tighter communication, leaving markets debating whether his first move will sound dovish or turn unexpectedly hawkish.

By Joseph Adinolfi and Joy Wiltermuth

By Joseph Adinolfi and Joy Wiltermuth