Fed Credibility Risks Emerge as Key Anchor for Global Risk Asset Pricing

Market pressure intensifies as Fed credibility doubts drive 30-year yields to 5.2%. BTC faces valuation headwinds from rising real rates and inflation fears.

Woofun AI notes that global risk assets face sustained pressure as Federal Reserve Chair Kevin Warsh attempts to weaken forward guidance. Investors interpret rising long-term rates as inflation resurgence rather than economic improvement, pushing the 30-year Treasury yield to 5.2% and weakening the US dollar. The core market contradiction has shifted from rate cut expectations to doubts over the Fed's ability to control inflation, exacerbated by escalating US-Iran tensions and rising energy prices. Consequently, technology growth stocks face valuation compression due to higher discount rates, while crypto assets like BTC encounter dampened risk appetite amid tightening dollar liquidity and potential September or December rate hikes.