The Federal Reserve just reminded everyone who’s really in charge. Minutes from the June 16-17 FOMC meeting, released on July 8, show policymakers held rates steady at 3.5%-3.75% but are increasingly open to hiking them higher. Bitcoin responded by falling roughly 2.7% to around $62,240, because crypto may be decentralized, but it still dances to the Fed’s tune.
The key phrase buried in the minutes: “some policy firming would likely become appropriate” if inflation remains above the 2% target.
A divided but hawkish committee
The committee wasn’t unanimous, but the lean was clear. Nine of the roughly 18-19 FOMC participants now forecast at least one rate hike before the end of 2026. Several members went further, explicitly stating they did not believe current borrowing costs were restrictive enough to tame inflation.
The committee identified multiple inflation drivers that aren’t going away anytime soon: supply shocks stemming from Middle East instability, tariff-related price pressures, and increased capital expenditure in AI technology.
