Several converging factors are poised to push inflation beyond 4% by the end of 2026. Delayed tariff impacts, expanding fiscal deficits, a tightening labor market driven by shifts in immigration policy, and monetary accommodation that's more aggressive than widely recognized are all contributing to the upward pressure. Meanwhile, inflation expectations themselves are beginning to drift higher—a sign that market participants are pricing in a sustained hot environment. These dynamics will create headwinds for asset valuations across markets, making inflation trajectories a critical watch for investors positioned in both traditional and digital assets.