Fed’s Warsh: US Economy Strengthening, Inflation Still the Problem

Warsh's framing splits the mandate cleanly: growth and employment are no longer the concern, so the policy debate narrows to how long inflation's five-and-a-half-year run can persist before it forces a harder stance. That matters for every risk asset priced off the rate path, crypto and tokenized real-world assets included, because a strengthening economy removes the cushion that weak data once provided. The open question is whether the next round of inflation readings finally breaks the trend or confirms it — and whether the Fed's tone hardens before that data arrives.