Bitcoin Caught Between Hawkish Fed and Dovish Warsh
Hawkish Fed minutes clash with incoming Chair Warsh's dovish leanings, creating policy uncertainty for markets.Summary
The Federal Reserve's recent meeting minutes revealed a surprisingly hawkish committee, with several officials suggesting potential rate hikes, which directly contrasts with the expected dovish stance of incoming Chair Kevin Warsh, who is set to replace Jerome Powell in the summer. This divergence sets the stage for a significant policy collision, potentially complicating Warsh's confirmation and limiting his ability to implement rate cuts early on, despite Trump's preference for cheaper borrowing. Following the minutes' release, Bitcoin slid, exacerbated by the return of Asian liquidity after the Lunar New Year and rising oil prices due to US-Iran tensions. While Coinbase CEO Brian Armstrong viewed the dip as psychological, the macro environment suggests continued volatility as the hawkish majority on the Fed committee appears set on keeping rates steady until inflation is firmly under control, pushing expected rate cuts to June or later.
(Source：BeInCrypto)