Kevin Warsh was supposed to be Trump's rate-cutter. Instead, the new Fed Chair has shocked markets with a hawkish inflation-first stance, sending the dollar to 13-month highs near 101 on the DXY and forcing Asian central banks into damage-control mode. The 10-year yield holds at 4.51%, and the gap between Wall Street rate forecasts has become a chasm.

Headwinds

• Dollar tsunami: Japan, Indonesia, and India are burning reserves to prop up weakening...