The Federal Reserve held interest rates steady on June 17 for the fourth meeting in a row. But roughly half of policymakers now support at least one rate increase before year-end.
Kevin Warsh, appointed by President Trump, chaired his first FOMC meeting and signaled a break from Jerome Powell’s detailed guidance. Instead, Warsh is embracing ambiguity, making future policy moves less predictable.
Treasury Secretary Scott Bessent previously endorsed a single, surgical “tap the brakes” hike to tame inflation driven by energy costs. That alignment between the White House and the Fed is rare.
Crypto markets reacted swiftly. Bitcoin fell to near $64,500, as higher rate expectations strengthen the dollar and reduce the appeal of non-yielding assets. During the 2022-2023 tightening, Bitcoin crashed from $69K to under $16K. The shift from expected cuts to possible hikes is injecting uncertainty across risk assets.