Fed’s Waller: US faces unsustainable structural deficit

Waller's framing moves fiscal sustainability from a political talking point to a monetary policy consideration, signaling that the Fed is increasingly weighing Treasury issuance dynamics in its outlook. This matters for market participants pricing duration risk and for any asset class sensitive to shifts in real yields, including crypto and tokenized Treasuries. The open question is whether such warnings translate into concrete policy adjustments or remain rhetorical pressure on Congress, and how the Fed balances debt concerns against its dual mandate if fiscal conditions tighten.