The Federal Reserve held its benchmark interest rate at 3.50%-3.75% on Wednesday, a decision that briefly pushed Bitcoin above $64,400. But the gains evaporated after Fed Chair Kevin Warsh told reporters, 'There is no soft inflation target,' sending the largest cryptocurrency back below $64,000.
The rate decision
The Fed's move to keep rates steady was widely expected. The central bank has held the line since its last cut in early 2026, as inflation remains above the 2% target. Wednesday's statement offered little new guidance on the timing of future moves, leaving markets to parse every word from the press conference.
Warsh's inflation comments
During the Q&A, Warsh pushed back against the idea that the Fed would tolerate higher inflation for longer. 'There is no soft inflation target,' he said flatly. The remark undercut the narrative that the central bank might ease policy sooner than expected — a narrative that had briefly buoyed risk assets, including crypto.
Bitcoin's price action
Bitcoin climbed above $64,400 in the minutes after the rate announcement, a level not seen in several sessions. But the rally lasted less than an hour. As Warsh spoke, the price slid back to just under $64,000. At press time, Bitcoin was still up about 1% on the day — a modest gain that erased most of the initial pop.
The next Fed meeting is scheduled for September. Markets will be watching for any shift in language around inflation or employment. For now, the central bank's message is clear: rates stay put until the data forces a change.
