Fed Minutes: Another Rate Hike Still on the Table
The latest Fed minutes signal a more hawkish tone.
Most Fed officials saw another 25 bps rate hike by year-end as potentially appropriate, mainly because inflation remains above the 2% target while economic growth and consumer spending stay resilient.
Key points: • September rate: 3.75%–4% • August headline PCE: 3.8% • Core PCE: 3.4% • 2026–28 inflation forecasts were raised • AI infrastructure investment is adding potential demand and price pressure • Treasury yields climbed sharply between meetings • Another hike is not predetermined and will depend on incoming data
For crypto, this is a risk factor: a higher-for-longer Fed can strengthen yields and reduce liquidity available for risk assets.
The next major decision point is the October 27–28 Fed meeting.
If inflation stays sticky, could BTC face another liquidity-driven pullback?
The latest Fed minutes signal a more hawkish tone.
Most Fed officials saw another 25 bps rate hike by year-end as potentially appropriate, mainly because inflation remains above the 2% target while economic growth and consumer spending stay resilient.
Key points: • September rate: 3.75%–4% • August headline PCE: 3.8% • Core PCE: 3.4% • 2026–28 inflation forecasts were raised • AI infrastructure investment is adding potential demand and price pressure • Treasury yields climbed sharply between meetings • Another hike is not predetermined and will depend on incoming data
For crypto, this is a risk factor: a higher-for-longer Fed can strengthen yields and reduce liquidity available for risk assets.
The next major decision point is the October 27–28 Fed meeting.
If inflation stays sticky, could BTC face another liquidity-driven pullback?