Fed Chair Warsh Caught in Rate Trap as Inflation Tops 3%
- —Inflation in July 2026 exceeded 3% — roughly 65 months above the 2% target
- —The Fed rate is currently 3.5-3.75%; a 25 bp hike would lift it to 3.75-4.00%
- —Probability of a hike at the September FOMC exceeds 85%
- —Trump publicly demands rate cuts, while Warsh leans toward fighting inflation
Why it matters: Fed tightening reduces liquidity, which historically weighs on bitcoin and the crypto market.
Source: Crypto Briefing