Fed Rate-Hike Odds at Next FOMC Meeting Disappear
The shift eases a key near-term policy concern for risk assets, though it does not establish that the Fed will cut rates.
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The shift eases a key near-term policy concern for risk assets, though it does not establish that the Fed will cut rates.
Core PCE is the immediate market catalyst: the forecast matches the previous 3.3% reading, while the post outlines sharply different reactions above or below that level.
Markets will parse every word from the Fed chair for clues on the rate path, with policy guidance from the presser often moving more than the statement itself.
Price stability is now the Fed’s predominant focus, while Warsh declined to signal another hike and warned against relying on individual data releases.
The unanimous 12–0 vote matters less than the dots: 16 of 18 officials see at least one more hike in 2026, and few see rates below 4% by end-2027.
The first hike in over three years came with a hawkish dot plot: 16 of 18 policymakers see another quarter-point move this year, setting up a longer tightening path than markets had priced.
The Senate's 49-50 cloture failure wiped out near-term regulatory upside just as 5% Treasury yields and $105 oil squeeze risk assets, putting Warsh's FOMC decision and the $70K 200-day average in…
A packed macro calendar puts the Fed's rate decision, the dot plot, and Chair Kevin Warsh's press conference at the center of today's risk appetite, with Bitcoin traders watching whether the $75K…
Warsh cannot match the hawkish pricing already in markets. A softer message risks dollar weakness and inflation-driven yields, which historically revives Bitcoin's sovereign-hedge trade.
Markets are pricing near-certainty of a 25 bps hike, a move that historically tightens dollar liquidity and pressures risk assets including crypto in the near term.
The IRS payment date lands on day one of the September 15–16 FOMC, layering a scheduled cash drain on bank reserves ($2.991T weekly average) just as policy guidance arrives.
The headline is the calendar, but the Fed's Dot Plot is what actually sets dollar liquidity for the rest of the quarter, and the BOJ's expected hike would tighten global conditions further.
Thorne calls it 'the Wall Street wall of mirrors,' a hike to placate futures rather than respond to real inflation.
The $3.7T-asset Wall Street bank's call reframes next week's FOMC from a hold into a tightening event, putting risk assets and crypto back on a defensive footing.
With no change at 39%, a hold remains a material alternative; larger hikes and both cut scenarios each sit below 1%, while other gauges have diverged.
The tape is now trading Fed odds rather than anything crypto-specific, and ZCSH's $500M AUM in a fortnight pulled 3% of ZEC's float while spot BTC ETFs kept a three-week inflow streak alive.
The probability makes the September decision a live risk-off event for crypto and other rate-sensitive assets.
A BEA methodology change could alter the Fed's preferred inflation gauge without changing CPI, splitting the rate signal across an immediate decision and a later data revision.
BTC's own positioning reads the opposite of the macro tape: longs flipped bullish, funding hit a 20-month high.
FOMC minutes could reset rate-cut bets for September, while EU operators face an Aug. 23 deadline to halt transactions with 14 named crypto-asset service platforms.