🚨 Fed Chair Warsh’s Jackson Hole message for markets wasn’t as dovish as investors had been expecting.

Inflation has cooled a lot from its peak levels, but it’s still comfortably above the Fed’s 2% target. Services inflation, wages, and shelter costs remain sticky.

On the other hand, the US economy doesn’t look weak either. Consumer spending is stable, the labor market is resilient, and there’s also strength showing in business investment.

That’s why there’s no strong reason for the Fed to cut rates soon. Warsh also highlighted the possibility that if inflation doesn’t improve, the Fed may have to keep rates even more restrictive.

📌 Simple takeaway:
You’ll need to rethink expectations for fast rate cuts.

If inflation stays sticky and the economy stays strong, the Fed won’t go into “rescue mode”—markets will need more than just hopes; they’ll need data-driven confirmation before easing.

For crypto & risk assets, this could mean more volatility ahead. 📉

Don’t fight the Fed. Watch the data. 👀