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Fed holds, split vote
The Federal Reserve left its benchmark fed funds rate range unchanged at 3.50%–3.75% after a 9–3 vote, extending a pause that multiple outlets described as consecutive.
“Bitcoin rose toward $64,400 while ETH traded near $1,917”
In the dissent, Minneapolis Fed President Neel Kashkari, Dallas Fed President Lorie Logan, and Cleveland Fed President Beth Hammack voted for a 25-basis-point rate increase, reflecting that inflation remained above the central bank’s 2% target.
Crypto markets reacted to the hold, with Bitcoin rising toward $64,400 as the decision avoided a surprise rate increase.
In a separate framing of the same decision, Bloomberg reported that the dissents underscored “the growing conviction among some policymakers that higher rates are needed to curb the inflation rebound.”
Warsh’s communication shift
Attention turned to Fed Chair Kevin Warsh’s post-meeting press conference as outlets emphasized that he has been openly critical of the Fed’s traditional use of forward guidance and the quarterly “dot plot.”
24/7 Wall St. said Warsh eliminated the Fed’s dot plot, leaving investors with fewer official signals and making the press conference potentially more consequential than the expected rate hold.
In Bloomberg’s account, Warsh stressed his firm commitment to fighting inflation and said, “There is no flexible implicit target, at least not during this committee's tenure.”
Univision also quoted Warsh describing the Fed’s approach as limited to facts, with the chair saying, “The monetary policy statement is limited to conveying only the facts.”
Inflation, oil, and next steps
Several reports tied the Fed’s decision to inflation pressure from energy, with CryptoRank noting that “oil price rebounds adding inflation risk” and that June core CPI was 2.6% while headline inflation was 3.5%.
“oil price rebounds adding inflation risk”
Anadolu Ajansı said Brent crude oil rose above $100 a barrel again last week and described risks to the global inflation outlook as central to this week’s central bank decisions.
In the U.S. context, Telemundo Tampa quoted Dallas Fed President Lorie Logan calling for rates to be “modestly” higher, while also warning that higher rates can make borrowing unaffordable for households and small businesses.
Looking ahead, CryptoRank reported that the Fed’s benchmark hold extended its pause for a fifth straight meeting and that market expectations had gained strength that the central bank may raise interest rates by the end of the year.
