Bitcoin Price Rebounds After Fed Rate-Hike Pause

The Federal Reserve left interest rates unchanged, as widely expected, after raising them in September for the first time in more than three years. The decision was not unanimous: two of the 12 policymakers voted to raise the benchmark to 4%-4.25%. Following last month’s hike—the first since mid-2023—attention turned to September inflation data. Both CPI and PPI showed inflation remained a major concern. Expectations for another increase eased, with experts convinced that any move would come in December. The Fed cited stronger-than-expected economic activity in holding rates steady, saying: “Job gains have kept pace with the workforce, and the unemployment rate has changed little.” At a closely watched press conference, Chair Kevin Warsh warned that financial uncertainty and elevated inflation persist because of “geopolitical developments.” He stressed that the U.S. economy is “resilient” and that the committee will “deliver price stability.” “Americans, of course, are still dealing [with] inflation that has been running above the committee’s objective for close to six years,” Warsh said. “It’s our responsibility to get inflation down.” Asked why the Fed did not raise rates if it will raise them in December, Warsh said fighting inflation is not about a specific date or data point but about broader objectives and monetary policy strategy. He declined to respond to Trump’s comments that rates should be lowered, but reassured the public that “politics played no role” in the decision to pause rate hikes. Bitcoin held steady. On-chain signals had suggested BTC could fall after the Fed decision, but that has not happened so far. The cryptocurrency had a volatile session, rising from $79,500 to $81,700 before the meeting and dipping to $80,500 hours before the conclusion. It rebounded quickly above $81,000 after Warsh finished speaking. Other major macro developments through the end of the week could drive further price swings. The post Bitcoin Price Rebounds as Fed Chair Warsh Explains Rate-Hike Pause appeared first on CryptoPotato.