Fed's September FOMC just dropped and Warsh isn't playing games.
Key signal: Economy is running hot. Spending solid, investment strong, jobs near full employment. But inflation? Still too high and summer data showed zero real improvement.
Warsh straight up said financial conditions aren't even restrictive right now. Translation: They can tighten more if needed.
Price stability is now the #1 priority since labor market is holding. No forward guidance this time - Warsh said chasing individual data points is "dangerous" and they're watching broader trends.
No rate hike signaled yet but door's wide open. Geopolitical risks + persistent inflation = Fed staying hawkish.
Biggest flex: Warsh pushed back hard on "markets forced our hand" narrative. This was their call, not yours.
Bottom line for crypto: Risk-off environment continues. Fed won't pivot until inflation actually breaks. Don't fade the Fed when they're this clear about priorities.
Watch $BTC correlation to DXY and real yields. Until financial conditions actually tighten, expect volatility.
Key signal: Economy is running hot. Spending solid, investment strong, jobs near full employment. But inflation? Still too high and summer data showed zero real improvement.
Warsh straight up said financial conditions aren't even restrictive right now. Translation: They can tighten more if needed.
Price stability is now the #1 priority since labor market is holding. No forward guidance this time - Warsh said chasing individual data points is "dangerous" and they're watching broader trends.
No rate hike signaled yet but door's wide open. Geopolitical risks + persistent inflation = Fed staying hawkish.
Biggest flex: Warsh pushed back hard on "markets forced our hand" narrative. This was their call, not yours.
Bottom line for crypto: Risk-off environment continues. Fed won't pivot until inflation actually breaks. Don't fade the Fed when they're this clear about priorities.
Watch $BTC correlation to DXY and real yields. Until financial conditions actually tighten, expect volatility.
