Fed minutes reveal hawkish shift as bitcoin falls to $66K

The Federal Reserve’s January meeting minutes showed a noticeably hawkish shift, with several officials raising the possibility of rate hikes if inflation stays above target. The FOMC voted 10-2 at the Jan. 27-28 meeting to hold the federal funds rate at 3.5%–3.75%, while Governors Christopher Waller and Stephen Miran dissented in favor of a quarter-point cut, citing labour-market risks.

Most participants warned that progress toward the Committee’s 2% objective might be slower and more uneven than expected, and a larger group wanted a clear indication that disinflation was firmly back on track before cutting again. Several officials asked for the post-meeting statement to reflect potential “upward adjustments” to the federal funds rate.

The hawkish tone also raises questions for the incoming Fed leadership: Chair Jerome Powell’s term ends in May and former Fed Governor Kevin Warsh has been nominated as his replacement.

United States

federal reserve, fomc, federal funds, interest rates, rate hikes, inflation, disinflation, jerome powell, kevin warsh, bitcoin