Fed Chair Warsh Plays Cryptic as $BTC and XRP Treat Powell-Sized Cliffhanger Like a Coin Flip 🪙

Bitcoin and XRP climbed and held intraday gains on Friday after Federal Reserve Chair Kevin Warsh declined to preview whether the Federal Open Market Committee would raise interest rates again at its October 27–28 meeting, opting instead to repeat his preference for data-dependent decisions. The rebound followed a broader sell-off in stocks and digital assets triggered by hotter-than-expected U.S. CPI and PPI inflation data, which had revived fears of additional monetary tightening.

Warsh, who joined IMF Managing Director Kristalina Georgieva for a fireside chat during the IMF-World Bank Annual Meetings, reiterated the central bank's commitment to price stability after the Fed's first rate cut this year, announced in September, brought the policy band to 3.75–4%. He framed the move as a response to sticky inflation, elevated oil prices, and resilient investment demand, adding that most global central banks have moved to tighten policy in an effort to combat inflation. Asked about the path ahead, Warsh stuck to a familiar script: "I don't prejudge meetings. I don't believe in saying now what I might do at the meetings we have in the balance of this year."

Crypto markets drew additional support from a drop in U.S. Treasury yields, a weaker dollar index, and easing crude prices, which together helped $BTC and XRP recover a portion of their earlier losses. Bitcoin's rebound came alongside broader gains across major tokens, though traders cited rate-path uncertainty as the dominant near-term variable.

Beyond monetary policy, Warsh struck an optimistic tone on artificial intelligence and the global economy, characterizing both as sources of long-term productivity growth even as near-term inflation pressures persist. The remarks echoed prior Fed commentary emphasizing a cautious, meeting-by-meeting approach over forward guidance, leaving market participants to parse subsequent inflation, employment, and energy data before the October FOMC gathering.

The October 27–28 FOMC meeting remains the next scheduled opportunity for the Fed to update its policy stance, with September CPI and PPI prints continuing to shape expectations around the size and timing of any further adjustments.