Fed Minutes Pressure Bitcoin as Hawkish Rate Risks Return

The Federal Reserve may soon meet less often, minutes released Wednesday reveal, as Chairman Kevin Warsh floated fewer Fed meetings at just six a year. Three officials wanted a rate hike, leaving Bitcoin (BTC) facing a quieter, tougher central bank. The Fed held interest rates at 3.50% to 3.75% on July 29, but the 9-3 vote hid a deeper split. The full minutes now show how close the committee came to raising rates. Three Fed Officials Wanted a Rate Hike Right Now Most officials chose to wait. However, Beth Hammack, Neel Kashkari, and Lorie Logan voted for a quarter-point hike. The three are the committees leading hawks, officials who favor higher rates to fight inflation. Many others agreed a hike may come soon. They said the Fed would likely need to act if inflation does not fall. The Feds preferred inflation gauge ran at 3.7% in June, far above its 2% goal. The latest FOMC minutes just revealed the Fed is still willing to hike again if inflation refuses to cool despite most officials favoring unchanged rates for now. Officials also saw more risks ahead. Many warned the Middle East conflict could keep supply costs high. Others said the price impact of past tariffs had mostly played out. Artificial intelligence (AI) split the room too. Some officials said the AI boom is already pushing prices up. Others expect it to cut costs and cool inflation later. Nearly all members kept one clear promise in the statement. The Fed will deliver price stability. The July hold had already spooked bond markets, pushing long-term yields to their highest since 2007. Why Fewer Fed Meetings Under Warsh Matter for Bitcoin Warshs pitch is simple. Six meetings a year, roughly every two months, would give the Fed more data before each call. No decision was made, and the 2026 calendar stands. However, the idea is now officially on the table. It fits a bigger pattern. Warsh has already cut statements short and stopped hinting at future moves. Fewer meetings would mean fewer signals for traders to trade on. That matters for crypto. Bitcoin moves on Fed expectations, and a quieter Fed is a harder Fed to read. Fewer scheduled decisions could also mean sharper market swings when they land. The pressure is real. Traders entered July pricing a one-in-three chance of a hike, per the minutes. A full quarter-point move was priced in by September. Higher rates have already hurt. Bitcoin has lagged gold this year as 5% Treasury yields pulled money toward safer assets. BTC price traded near $68,245 after the release, up 5.3% in a day, per BeInCrypto Markets data. Bitcoin Price Performance. Source: BeInCrypto The tough tone quickly added pressure on Bitcoin. The next big test comes on September 15-16. Markets will then learn if the hawks grow louder or finally get their hike. Read the article at BeInCrypto