An ECB policymaker just flagged something investors should watch: fiscal consolidation is becoming unavoidable. According to Nagel, we're hitting a critical inflection point where governments will have no choice but to tighten their purse strings.

Why does this matter? Because massive fiscal spending was a defining feature of the post-pandemic era. When central banks flooded markets with liquidity while governments pumped trillions into stimulus, it fueled asset prices across the board—including crypto. Now that the music's slowing, the dynamics are shifting.

Nagel's message is essentially a heads-up: consolidation isn't optional anymore, it's inevitable. This kind of policy pivot typically reshapes market behavior—capital allocation changes, risk appetite adjusts, and volatility often follows. For traders and investors tracking macro trends, this is the kind of signal that deserves attention. When central bankers start talking consolidation openly, it usually means the easy-money chapter is closing.