Bitcoin Price Outlook as Barclays Forecasts Two Fed Rate Hikes After Warsh’s Hawkish Speech

Bitcoin (BTC) price is trading at $78,325 today, August 31, with this being a 3.8% drop from the August 28 high of $81,478. The drop comes on the back of a hawkish speech by the Federal Reserve Chair Kevin Warsh during the Jackson Hole Symposium. That speech has led to Barclays forecasting that the Fed will raise interest rates two times in 2026.

Barclays Predicts Fed Rate Hikes After Jackson Hole

An earlier report by CoinGape noted that Warsh issued a warning about inflation while addressing economists and other central bankers at Jackson Hole.

Warsh noted that the CPI and the PCE data showed that US inflation remained above the Fed’s target of 2%, adding that he was also skeptical of whether the underlying trends have improved.

Barclays now says that Warsh is leaning towards supporting rate hikes in 2026, because his remarks at Jackson Hole, which pulled Bitcoin price down, suggest that he is displeased with the sluggish rate at which inflation is dropping towards the Fed’s target of 2%.

Barclays also notes that while PCE and CPI inflation have dropped considerably over the last three months, Warsh is still assessing the drop from a six-month and 12-month lens.

The expectations of two rate hikes by Barclays come two weeks before the September 16 FOMC meeting takes place. Data from top prediction markets show that 52% of investors are betting that there will be a change to interest rates after the September FOMC meeting.