Fed’s Musalem: Rates May Need to Rise Further to Curb Inflation

Musalem's emphasis on acting early and gradually, rather than late and large, signals a Fed still leaning toward pre-emptive tightening even as inflation cools from goods into broader channels. The notable detail is his read that commodity pressure now runs through base metals like copper, not just oil — a cost channel that feeds directly into electrification, construction and grid supply chains where tokenized commodity and RWA products have been expanding. Whether that metals-led inflation narrative gains traction among other Fed officials is the open question for rate-sensitive crypto and real-asset markets.