Fed Hikes Rates for the First Time Since 2023, Bitcoin Spikes
The Trump-Warsh Collision
The hike puts Warsh in an uncomfortable spot. Wednesday's meeting was only his third since being confirmed in May, and it delivers close to the opposite of what Trump said he wanted when he picked him. "I'm going to put somebody that wants to cut rates," Trump told reporters last year before nominating Warsh. He also encouraged Warsh to be "independent."
Seems like Warsh ended up doing both what Trump expected and didn't expect: Being totally independent and increasing rates.
Sen. Elizabeth Warren, a longtime critic of Warsh's independence from the White House, told CNN that Trump's own Iran conflict and tariff policies had backed the Fed chair into a corner, forcing him to choose between the administration and controlling inflation. She argued a hike would still cost ordinary families through pricier credit card debt and mortgages regardless of which way Warsh went, and said it would take more than one decision to change her view of him.
Trump, Vice President JD Vance and Treasury Secretary Scott Bessent had all publicly pushed for cuts in the two weeks before the decision, with Trump going as far as threatening to halt trade with countries running surpluses with the U.S. if rates didn't come down.
What it Means for Bitcoin and Altcoins
Crypto walked into the decision already bruised. Bitcoin traded around $75,200 in the hours before the announcement, well off its September peak near $82,000 and still digesting Tuesday's drop after the Clarity Act failed its Senate cloture vote.
Analysts had flagged a support band between roughly $73,500 and $75,600 as the line in the sand, with a daily close below it opening the door to $71,000, and even $66,900 on some technical models, a move that would unwind the golden cross that triggered Bitcoin's summer rally.
Bitcoin tested that zone directly on the announcement, spiking toward $75,900 before reversing to roughly $75,100 within minutes, ultimately holding above the lower end of the support band rather than breaking it outright. The Crypto Fear & Greed Index is now back to neutral levels, after reaching extreme greed a few weeks ago, down to 51 points from 69 of yesterday.
The Fed's next meeting is scheduled for October 27-28, with its following gathering, and next dot-plot update, set for December 8-9, when Wall Street will find out whether Wednesday's hike was the last of the year or the first of several.
This article has been published in decrypt.co via Yahoo News.
Fed Hikes Rates for the First Time Since 2023, Bitcoin Spikes
The Federal Reserve delivered the hike Wall Street had almost unanimously priced in.
finance.yahoo.com
