Good morning! Here's the latest in trending:

The summit: Xi asks Trump whether the U.S. and China can avoid a 'Thucydides Trap,' while confusion reigns over agriculture.

The debut: Capitalizing on the boom, AI chipmaker Cerebras Systems (CBRS) raises $5.55B in the year's largest IPO.

The cost: The Golden Dome missile defense shield could top $1.2T, according to the Congressional Budget Office.

Following the closest Senate vote since the confirmation requirement began in 1977, Kevin Warsh has officially been cleared to become the next chair of the Federal Reserve. Under his coming leadership, Warsh has vowed that monetary policy will remain "strictly independent" and has advocated for a strict return to the Fed’s dual mandate of price stability and maximum employment. He's also seeking a new framework with new communication, as well as aiming to shrink the Fed’s $6.7T balance sheet "slowly and deliberately." Warsh will take the reins of the central bank tomorrow when current Chair Jerome Powell's term comes to an end.

Background: A former Morgan Stanley executive and economic advisor to President George W. Bush, Warsh originally gained national prominence in 2006 as the youngest person ever appointed to the Fed's Board of Governors. He ended up serving as a lieutenant to then-Chairman Ben Bernanke, playing a critical role in the aftermath of the 2008 financial crisis. During that period, he became the Fed's central liaison to financial markets to rescue Wall Street, but ultimately resigned from his position due to policy disagreements regarding the expansion of monetary stimulus and quantitative easing.

"Though Warsh often had a hawkish bias during his time as a Fed governor from 2006 to 2011, especially after the global financial crisis, his remarks more recently have leaned in the opposite direction," SA Analyst Principal Financial Group writes in Warsh The Reformer: A New Era For The Fed. "He has argued that the U.S. economy faces an enduring AI-driven productivity boom that will lead to significant disinflationary pressures. Indeed, given what's at stake, this is an area in which Chair Warsh is likely to push Fed staffers to produce more research to inform policy direction. He's also doubtful of current measures of inflation, preferring instead trimmed mean or median measures—both of which are running below headline or core PCE inflation."

Current dynamics: While Warsh will take the helm from Powell, the latter is still sticking around as Fed governor until his DOJ investigation is "well and truly over." Some have raised concerns that in such a capacity he could act as a "shadow Fed chair," especially since Warsh will take his seat from Stephen Miran, who has been the biggest advocate of rate cuts on the FOMC. These developments come as investors brace for U.S. yields to stay higher longer, with the latest 30-year Treasury auction hitting 5% for the first time since 2007, as surging energy prices continue to push inflation higher across the economy.