Warsh’s Jackson Hole speech puts rate hike on the table

Federal Reserve Chair Kevin Warsh has put another interest-rate increase on the table after saying inflation remains well above the Fed’s 2% target, sending Bitcoin below $80,000 as traders raised their rate-hike bets. Summary Warsh said 12-month PCE inflation stands at 3.7%, while the six-month rate has reached 4.1%. Bitcoin fell nearly 2% to about $79,200 after trading above $80,000 earlier in the day. Polymarket traders raised the probability of a 2026 rate hike to 68% after the speech. Nansen analysts said a hawkish message could pressure crowded Bitcoin longs after a $6.4 billion options expiry. Warsh says inflation must return to 2% faster The Federal Reserve’s published remarks show that Warsh made price stability the central focus of his first Jackson Hole keynote as chair, describing the 2% PCE inflation goal as a “firm, fixed target.” Warsh said the Fed’s preferred measure, the 12-month change in the Personal Consumption Expenditures price index, stands at 3.7%. The six-month change has reached 4.1%, while comparable headline and core Consumer Price Index readings also remain elevated. “So the Fed’s predominant focus right now should be on prices,” Warsh said. Although th...