Bitcoin climbed above $64,400 after the Federal Reserve held its benchmark rate at 3.50%-3.75% on Wednesday, then gave back the move when Chair Kevin Warsh opened his press conference by saying, "There is no soft inflation target."
BTC was trading just under $64,000 at press time, up about 1% over 24 hours, according to CoinGecko.
The reaction shows crypto traders are taking their cues from Warsh's inflation rhetoric rather than the rate decision itself, which markets had mostly priced in.
The hold came with an unusual twist: three FOMC members — Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan — dissented in favor of a 25 basis point hike, the first time in years markets went into a Fed meeting split on whether the central bank would raise rates. Futures had assigned roughly 35% odds to a hike, per CME FedWatch data.
The decision was the second under Warsh, who took over the Fed this year after President Donald Trump nominated him to replace Jerome Powell. The statement said inflation "remains elevated" relative to the 2% goal, "in part reflecting supply shocks that have driven price increases in certain sectors, including energy," and that economic activity is expanding "despite elevated uncertainty that owes, in part, to the conflict in the Middle East."
