BTC Price Drops as New Fed Chair Kevin Warsh Holds Rates Steady

The first FOMC meeting with the new Federal Reserve Chair, Kevin Warsh, at the helm of the central bank didn’t provide any surprises, as the entity expectedly left the interest rates unchanged.

With the benchmark remaining between 3.5% and 3.75%, bitcoin’s price reacted with minor initial volatility, but there are some warning signs about an upcoming correction.

Recall that nearly two months ago, the Fed under then-Chair Jerome Powell left the rates unchanged for the third consecutive time. However, there were signs from Powell that rate hikes might follow suit.

Despite today’s non-event, as it was described by David Wessel, director of Brookings’ Hutchins Center on Fiscal and Monetary Policy, he also said that Kevin Warsh now finally has the power to change things at the Fed after years of “ranting about” it.

Bank of America’s fund manager survey showed that 55% anticipated Warsh would be hawkish at the press conference, but Stephen Juneau, the bank’s US economist, held the opposite view.

“The investor consensus seems to be that Warsh will lean hawkish in his press conference. We think he’ll be dovish.”

Bitcoin’s price was slightly volatile in the hours leading up to the event, going below $65,000 earlier today before it shot up to $66,400. However, it dipped by over a grand in the first minutes after the news of the unchanged rates went live.

Previous reports from crypto experts noted that the first FOMC meeting and the subsequent Warsh press conference could be one of the most important macro events for the industry.

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