*Mr. Dragon's Daily Take* —— Fed Governor's Public Warning: If Inflation Doesn't Slow Down, I'll Hike Rates Cook dropped a bold statement: "If I don't see sustained signs of inflation cooling soon, I'm ready to take action." In plain terms: Not raising rates is me giving the market some face, but don't push me to flip the table. She added another jab: "The risk of inflation staying above target for five consecutive years and becoming deeply rooted in price and wage-setting behavior is rising." The key takeaway here is that she's not just talking about data—she's saying inflation is already starting to change people's behavior. When everyone expects prices to keep rising, the act of rising prices itself becomes a habit. And once that habit forms, cutting rates twice won't be enough to stop it. That said, she did leave some room for optimism: weakening tariff impacts, falling oil prices, and easing AI-related pressures might help inflation cool off naturally, without the need for rate hikes. But the real kicker is in the second half: "If I don't see signs of inflation slowing, I'm ready to hike rates." This isn't just an opinion—it's a warning. The market's current optimistic pricing is clearly out of sync with what the Fed Governor is publicly saying. I estimate the probability of a Fed rate hike in September to be 60%, so Bitcoin might still manage to hang on for a bit during this bear market's final stretch. What do you think the Fed will do next? A: Stay on hold B: Be forced to hike rates again I'm leaning toward B. Drop your thoughts in the comments!