BTC Price Falls as New Fed Chair Kevin Warsh Keeps Rates Steady

The decision was eagerly awaited but fears remain about possible increases by the end of the year.

The first meeting of the FOMC with the new Chairman of the Federal Reserve, Kevin Warsh, at the head of the central bank did not hold any surprises, since the entity expected to leave interest rates unchanged.

With the benchmark remaining between 3.5% and 3.75%, Bitcoin price responded with slight initial volatility, but there are warning signs of a correction to come.

Recall that almost two months ago, the Fed, under then-chairman Jerome Powell, left its rates unchanged for the third time in a row. However, Powell hinted that rate hikes could follow suit.

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

The survey of Bank of America fund managers showed that 55% expected Warsh to be hawkish at the news conference, but Stephen Juneau, the bank’s U.S. economist, took the opposite view.

“The investor consensus seems to be that Warsh will be more hawkish at his press conference. We think he will be dovish.”

Bitcoin’s price was slightly volatile in the hours leading up to the event, falling below $65,000 earlier in the day before rising to $66,400. However, it fell by more than a thousand dollars in the first minutes after the news of unchanged rates was released.

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

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