Fed’s Barr backs decisive rate hike if inflation doesn’t cool as Polymarket 2026 odds hit 72%

Fed Governor Michael Barr signaled support for a decisive rate hike if inflation fails to cool, reinforcing a higher-for-longer narrative. Polymarket pricing puts 2026 hike odds at 72%, suggesting tightening risks are being increasingly internalized. This backdrop typically lifts real rates and supports the dollar while pressuring duration-sensitive assets and speculative risk, including crypto, via tighter liquidity expectations and higher discount rates.