The Fed kept interest rates unchanged, as expected.
All eyes are now on Federal Reserve Chairman Kevin Warsh’s press conference, scheduled for 9:00 PM (2:30 PM ET).
Here’s Bitcoin’s reaction after the interest rate decision:
New Fed chairman Kevin Warsh, like his predecessor Jerome Powell, has repeatedly emphasized the importance of controlling inflation. Some investors believe Warsh has taken a tougher stance on inflation than expected.
While interest rate cuts were expected during Warsh’s tenure as FED Chair, appointed by Trump, market expectations that the central bank may raise interest rates by the end of the year have gained strength.
Trump frequently criticized the Fed chairman on social media, arguing that interest rates were not being lowered fast enough during Powell’s tenure, and even threatened to remove him. However, despite no major changes in the Fed’s decision-making approach since Warsh took office, Trump’s attacks on the central bank chairman have ceased.
Michael Reynolds, Vice President of Investment Strategy at Glenden, pointed out the similarities between the two Fed chairmen, stating, “There is a significant degree of continuity between the two chairmen.”
*This is not investment advice.