A broad selloff ripped through global financial markets on August 29 after Federal Reserve Chair Kevin Warsh delivered an unexpectedly hawkish assessment of inflation at the Jackson Hole economic symposium. Stocks, precious metals, and cryptocurrencies lost nearly $2 trillion in combined value within roughly two and a half hours, with digital assets bearing a significant share of the damage.

Warsh told the gathering that inflation remains concerning and that the central bank’s 2% target is still out of reach. He noted that 54% of the components making up personal consumption expenditures inflation had risen more than 3% over the past 12 months, a statistic that underscored the persistence of price pressures despite earlier progress….