The Federal Reserve's inflation fight remains incomplete—at least that's the takeaway from recent comments by Fed policymaker Raphael Bostic. He's pushing back against any notion of easing policy, arguing that a passive stance would be a mistake at this juncture. Instead, he's advocating for keeping monetary policy restrictive to tackle lingering price pressures.

What's catching investors' attention is his economic outlook. Bostic suggests the economy is poised to strengthen through 2026, which could create new headwinds for inflation. Translation: as growth accelerates, demand may intensify, putting additional upward pressure on prices. This assessment has implications far beyond traditional markets—it shapes expectations around interest rates and risk appetite, factors that directly influence how capital flows into digital assets and broader market cycles.

For those tracking macro conditions, this reinforces a key narrative: the policy tightening cycle isn't finished, and sustained higher rates could remain a reality longer than some have anticipated.