Fed's Paulson signals hawkish stance as AI buildout fuels inflation
- —Fed funds target range sits at 3.75%–4.00%, with 2026 PCE inflation projected at 3.7%
- —Odds of two rate hikes in 2026 fell to 48% from 64%
- —Odds of three hikes rose to 41.7% from 22% over 24 hours
- —Paulson tied inflationary pressure to the ongoing AI infrastructure buildout
Why it matters: A more hawkish Fed path pressures liquidity and risk assets, including bitcoin and the broader crypto market.
Source: Crypto Briefing