🚨 THE FED JUST SENT ONE OF ITS MOST BEARISH WARNINGS TO MARKETS THIS YEAR. Multiple officials warned that further rate hikes may be necessary if inflation refuses to fall. Three FOMC members already voted to raise rates by 25 BPS at the July meeting. The Fed says inflation risks remain tilted higher, while some officials believe financial conditions still aren’t restrictive enough. At the same time, the Fed says stock valuations are at extremes only surpassed during the dot-com bubble. Officials also warned an AI disappointment could trigger a major stock repricing and tighter financial conditions. Hedge fund leverage is near all-time highs, while repo and prime brokerage borrowing have hit record levels. The Fed is now facing sticky inflation, extreme valuations and record leverage at the same time. This is an extremely dangerous setup for markets.(Crypto Rover)