CoinDesk
The Federal Reserve is expected to hold its benchmark rate at 3.75%–4% at 2 p.m. ET, with Chair Kevin Warsh’s press conference scheduled for 2:30 p.m. The key signals are whether policymakers dissent, how Warsh assesses looser financial conditions and what he says about inflation.
A vote with three or more members favoring a rate increase over a hold would point to greater urgency to tighten policy. Treasury yields have retreated, with the 10-year yield down 36 basis points since Oct. 7 to 5%, and the 30-year yield lower by 40 basis points. Meanwhile, inflation has exceeded expectations for two consecutive months, oil is near $100 and U.S. diesel prices are at record highs.
Bitcoin was recently trading at $81,411, up more than 2% over 24 hours. A more hawkish message could bolster the dollar and weigh on bitcoin, while Warsh’s comments on yields, financial conditions and energy-driven inflation will help shape market expectations for coming rate decisions.
Frequently asked questions
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What rate decision is the Fed expected to make?
The Fed is expected to hold its benchmark rate in the 3.75%–4% range.
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Why would three or more dissenting votes matter?
Three or more members favoring a rate increase instead of a hold would signal greater urgency among policymakers to tighten.
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How have Treasury yields moved ahead of the meeting?
The 10-year yield has fallen 36 basis points since Oct. 7 to 5%, and the 30-year yield is down 40 basis points.
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What inflation pressures are in focus for Warsh?
Inflation exceeded expectations for two consecutive months, oil is near $100 and U.S. diesel prices are at record highs.
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How could a hawkish Fed signal affect bitcoin?
A hawkish signal could bolster the dollar and weigh on bitcoin. Bitcoin was recently trading at $81,411, up more than 2% over 24 hours.
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