Morgan Stanley questions Fed's approach to price stability under Warsh
- —The Fed raised rates by 25 bps to 3.75–4%, the first hike since 2023
- —Warsh is cutting forecasts and forward guidance, citing five years of inflation misses
- —Morgan Stanley: markets may price in a premium for Fed unpredictability
- —The hike is tied to energy price volatility amid tensions with Iran
Why it matters: Fewer signals from the Fed mean higher volatility in rates and risk assets, including bitcoin, which is already reacting to the regulator's decisions.
Source: Crypto Briefing