Federal Reserve held rates steady amid inflation concerns; Bitcoin rebounded above $81,000 following Fed Chair Warsh's press conference.
Macro & Markets ·
The US Federal Reserve maintained interest rates unchanged following September's first increase in over three years, though the decision was not unanimous—two of twelve policymakers voted to raise the benchmark rate to 4%-4.25%. Fed Chair Kevin Warsh attributed the hold to stronger-than-expected economic activity while cautioning that financial uncertainty and elevated inflation persist due to geopolitical developments. Warsh emphasized the resilience of the US economy and the Federal Reserve's commitment to achieving price stability, noting that inflation has remained above the committee's target for close to six years.
Bitcoin experienced intraday volatility, trading between $79,500 and $81,700 before the announcement, then dipping to $80,500 hours prior to the Fed's conclusion. Despite earlier on-chain signals suggesting a potential price decline, the cryptocurrency rebounded above $81,000 following Warsh's press conference. The rebound suggests market participants responded positively to the Fed's messaging around economic resilience and inflation management, though additional macro developments remained capable of driving further price movement.