Fed’s Musalem: Inflation Too High, More Tightening Needed, Rates Should Rise in 6-9 Months

Musalem's call for higher rates over a six-to-nine-month horizon, paired with his admission that policy lags run about 18 months, implies the Fed would be tightening into an economy where the effects won't be visible until well after the moves. That mismatch is the real signal for risk assets, including crypto and tokenized RWAs, which have traded as long-duration bets on easing. His stated open mind at each FOMC meeting leaves the door to a pause or reversal, so the question worth watching is whether other Fed officials echo his urgency or push back.