Bitcoin Rebounds Toward $60,000 as Fed Chair Warsh Says Inflation Risks Have Eased

Bitcoin climbed back toward the $60,000 level on Wednesday, gaining more than 2% over 24 hours after Federal Reserve Chair Kevin Warsh stated that inflation risks had come down while reaffirming the central bank’s commitment to its 2% target. Speaking at the ECB Forum in Sintra, Portugal, Warsh declined to signal the Fed’s next rate move but reassured markets that price stability remains the central priority.

Fed Stays Data-Dependent Ahead of July Meeting

Warsh said policymakers would assess incoming economic data at their meeting in four weeks before making any decisions. He pushed back against expectations of a higher inflation tolerance, stating clearly that the Fed would deliver on its 2% objective regardless of market assumptions.

AI Could Reshape Monetary Policy, Warsh Says

Beyond inflation, Warsh highlighted artificial intelligence as a potential structural force for the US economy. He noted current AI-driven capital expenditure was showing up on the demand side but expected eventual supply-side expansion that could carry significant implications for future monetary policy decisions.

Central Banks Stepping Back From Forward Guidance

ECB President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank of Canada Governor Tiff Macklem joined Warsh in broadly agreeing that explicit forward guidance should be reconsidered in favor of more flexible policy communication frameworks.