🏛 Central Banks & Macro risk-off · 1–3 years
A what‑if from the future

What if Post-Powell chair: a credible inflation hawk reanchors expectations?

A hawkish successor signals a higher-for-longer reaction function and a tougher inflation target, lifting real yields and the dollar while compressing inflation breakevens and froth in risk.

21%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 21% · 90% range 4–37% · 40 analogues · measured class deflation 69% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — deflation ≈0.3895/yr → 69% in 3 yr69%
Analyst prior · editorial share 29% of the class20%
Pooled · weight 87%22%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)22%
Published21%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. A hawkish successor signals a higher-for-longer reaction function and a tougher inflation target, lifting real yields and the dollar while compressing inflation breakevens and froth in risk. The trigger decomposes into signed root‑shocks — US dollar (DXY) ▲ · Fed policy path ▲ · Inflation expectations ▼ · Real yields ▲ · Risk appetite ▼ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -1.9%
hist -1.88–-0.27% · other way +7.46% (n=11)
2Tech sector XLK 📈 chartEquity▼ -1.4%
hist -0.97–-0.28% · other way +2.04% (n=11)
3Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.4%
hist -0.97–-0.33% · other way +1.13% (n=11)
4Solana SOLon Hyperliquid 📈 chartCrypto▼ -1.2%
hist -1.01–-0.23% · other way +5.49% (n=8)
5Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -1.1%
hist -5.47–+1.35% · other way -1.1% (n=9)
6Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -0.9%
model prior · unmeasured
7Ether ETHon Hyperliquid 📈 chartCrypto▼ -0.9%
hist -5.78–+1.61% · other way +6.73% (n=8)
8Gold XAUon Hyperliquid 📈 chartCommodity▼ -0.8%
hist -0.61–+0.9% · other way -1.48% (n=11)
930y Treasury yield DGS30 📈 chartRate▲ +7bp
hist -1.09–+14.28% · other way +7.3% (n=11)
1010y Treasury yield DGS10 📈 chartRate▲ +6bp
hist -2.93–+17.14% · other way +5.7% (n=12)
11Coinbase COINon Hyperliquid 📈 chartEquity▼ -0.7%
hist -2.09–+3.23% · other way +4.16% (n=6)
12US dollar (DXY) DXYon Hyperliquid 📈 chartFX▲ +0.6%
hist +0.1–+0.59% · other way -0.18% (n=12)
13Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.6%
hist -0.34–+1.68% · other way -1.63% (n=11)
14Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -0.6%
hist -1.58–+0.2% · other way +4.54% (n=11)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Tech sector -1.4% · 30y Treasury yield +7bp · 10y Treasury yield +6bp · Aussie dollar -0.4% · Turkish lira -0.5% · Homebuilders -0.5%

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 Russia central-bank reserves frozen 2022-02 Turkey fires central-bank governor Agbal, sparking lira plunge 2021-03 Sintra tantrum 2017-06 SNB introduces negative interest rates 2014-12 Russian ruble 'Black Tuesday' 2014-12 Shanghai Sneeze global selloff with then-record VIX spike 2007-02 The Great Bond Massacre 1994-02 Louvre Accord 1987-02 US dollar index peaks at its all-time high 1985-02 Volcker Shock 1979-10 Iranian Revolution oil shock 1978-12 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 Fatal mud-rush halts Freeport's Grasberg, tightening copper supply 2025-09 Israel strikes Iran — Operation Rising Lion 2025-06 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Tesla shares crater on DOGE political backlash and Europe sales collapse 2025-03 TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 Henry Hub natural gas hits a 25-year low amid record US production 2024-11 ASML bookings-miss crash 2024-10 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Waha hub natural gas prices crash to record negative on Permian glut 2024-08 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Nikkei 225 record single-day rebound 2024-08 Nikkei 225 worst single-day crash since 1987 2024-08 KOSPI biggest-ever point loss triggers circuit breaker 2024-08 VIX third-highest spike on record 2024-08 Intel's Q2 earnings trigger its worst single-day crash since 1974 2024-08 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 India's Modi loses single-party majority 2024-06 Mexico's Sheinbaum landslide + supermajority scare 2024-06 Turkey's central bank hikes to 50% before local elections 2024-03 Bank of Japan ends negative rates and yield curve control 2024-03 Egypt's third flotation and 600bp rate hike 2024-03 Wagner Group mutiny against the Kremlin 2023-06 Turkish lira hits record low after Erdogan re-election 2023-05
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
AMD AMDSHORT-4.6% · 5d -3.5%80%38 0.45✓ matches cascade
MU MUSHORT-4.1% · 5d -3.1%73%38 0.44✓ matches cascade
CNY CNYSHORT-0.4% · 5d -0.3%65%35 0.29✓ matches cascade
30y yield DGS30LONG+10bp · 5d +4bp66%40 0.27✓ matches cascade
ARM ARMSHORT-5.2% · 5d -6.2%68%25 0.26✓ matches cascade
SMH SMHSHORT-1.2% · 5d -1.3%65%35 0.23✓ matches cascade
XLK XLKSHORT-0.3% · 5d -1.0%65%35 0.21✓ matches cascade
Gold XAULONG+1.1% · 5d -1.3% ↺ fades63%35 0.21⚠ differs
SOL SOLSHORT-0.4% · 5d -6.9%63%31 0.19✓ matches cascade
NVDA NVDASHORT-1.3% · 5d -4.0%65%35 0.19✓ matches cascade
MSTR MSTRSHORT-0.8% · 5d -3.2%60%35 0.18✓ matches cascade
10y yield DGS10LONG+13bp · 5d +7bp60%40 0.18✓ matches cascade
HOOD HOODLONG+8.4% · 5d -0.1% ↺ fades61%30 0.18⚠ differs
Bitcoin BTCSHORT-4.5% · 5d -4.2%61%34 0.17✓ matches cascade

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.