Fed’s Waller: Rising Treasury Yields Are Doing Some of the Tightening

Waller's framing matters because it lets the Fed treat market-driven borrowing costs as a partial substitute for further policy tightening, easing pressure to move again. It affects rate-sensitive sectors most directly, and by extension any yield-dependent asset — including crypto and tokenized RWA products that trade against the same duration and risk-appetite backdrop. The open question is whether the Fed formally leans on this channel in its communication, or keeps treating it as an unintended side effect.