Treasury official urges Fed caution on rate hikes amid energy supply shock

A senior Treasury official called for caution on further Federal Reserve rate hikes, citing an energy supply shock as a reason to avoid over-tightening. The official warned that misjudging inflation's persistence could fuel economic volatility and erode the credibility of monetary policy. The remarks matter because rate expectations drive risk appetite across crypto and traditional markets, with tighter policy historically pressuring tokens such as BTC and ETH and draining liquidity from DeFi protocols. Markets will watch upcoming inflation prints and Fed commentary for signals on whether the hiking path slows.