KEVIN Warsh’s early days at the helm of the Federal Reserve (Fed) are a tough reminder that when it comes to currencies, the US central bank isn’t always going to act with the best interests of international markets.

Warsh is signalling he will be firmly focused on controlling inflation.

The Fed chief was far more hawkish than anticipated in presiding over his first policy meeting, and officials are leaning toward an interest-rate hike this year.