Fed warns savers of 'reckoning' as inflation stays above target
- —US personal savings rate fell to 2.6%, the lowest since 2022
- —Fed raised rates 25 bps on September 16 to 3.75%-4.00%, first hike since 2023
- —Inflation runs hot: CPI at 3.4% y/y, PCE near 3.7%, above the 2% target
- —High-yield savings and money-market yields climbed to about 4.1% APY
Why it matters: Tighter Fed policy compresses liquidity and risk appetite, a historical headwind for bitcoin and the broader crypto market.
Source: Crypto Briefing