Last night, Waller said a lot, but to put it simply: if inflation doesn’t head toward 2%, the Fed still has work to do. Right now, the U.S. job market hasn’t collapsed, the economy is holding up, AI investments are even booming, and a 3.5%–3.75% interest rate hasn’t visibly suppressed the economy. So, naturally, the Fed has no reason to rush into dovish territory. If inflation stays sticky like this, rate hikes are still on the table. Waller basically shot down the market’s earlier idea that ‘rate hikes are pretty much done.’ In the short term, this is definitely uncomfortable for U.S. stocks and $BTC. When Treasury yields and the dollar go up, high-valuation tech stocks and the crypto space will take a hit. But this time, it’s different from a recession-driven sell-off—the economy itself isn’t bad. Waller is actually optimistic about the AI sector, so I think this is more about cutting valuations, not breaking the narrative. Just keep an eye on inflation and jobs moving forward. If jobs stay strong and inflation stays sticky, rate hike expectations won’t drop. But once inflation really starts heading down noticeably, U.S. stocks and $BTC will likely be the first to rally.