Bitcoin Price Rebounds as Fed Chair Warsh Explains Rate-Hike Pause

In what was the most expected turn of events, the US Federal Reserve kept the interest rates unchanged after the first hike in over three years in September. However, the decision was not unanimous: two of the 12 policymakers voted to raise the benchmark to 4%-4.25%. Fed Holds Rates Steady Following last month’s hike, which was the first since mid-2023, all eyes turned to the inflation data for September, and both major indices, the CPI and the PPI, showed that inflation has remained a major concern. However, expectations for a new rate hike dropped, and experts were adamant that if there’s a raise, it would be in December. After keeping rates unchanged today, the Federal Reserve justified its decision by highlighting stronger-than-expected economic activity, and added: “Job gains have kept pace with the workforce, and the unemployment rate has changed little.” In the subsequent highly anticipated press conference, Fed Chair Kevin Warsh cautioned that the financial uncertainty and elevated inflation remain due to “geopolitical developments.” He doubled down on the fact that the US economy is “resilient,” and added that the committee will “deliver price stability.” “Americans, of course, are still dealing [with] inflation that has been running above the committee’s objective for close to six years,” Warsh said. “It’s our responsibility to get inflation down.” On the question of why the Fed didn’t raise rates today if it will hike them in December, Warsh answered that quashing inflation is not about a specific date or data point but about the broader objectives and a monetary policy strategy. He also refused to respond to Trump comments that rates should be lowered, but reassured the public that “politics played no role” in today’s decision to halt the rate hikes. BTC Stays Stable Although there were several on-chain signals suggesting that BTC’s price could tumble after the Fed’s decision, that hasn’t been the case so far. The cryptocurrency had a rather volatile day, jumping from $79,500 to $81,700 ahead of the meeting before dipping to $80,500 just hours prior to its conclusion. However, it has rebounded swiftly above $81,000 once again after Chairman Warsh finished his press conference. Nevertheless, other major macro developments through the end of the week could drive further price fluctuations. The post Bitcoin Price Rebounds as Fed Chair Warsh Explains Rate-Hike Pause appeared first on CryptoPotato.