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 committee's 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 Fed's preferred inflation gauge ran at 3.7% in June, far above its 2% goal.

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.