Federal Reserve Chair Kevin Warsh stated on July 30 that the central bank has « no tolerance » for inflation, reaffirming its firm commitment to the 2% target. Wall Street reacted sharply, with the Dow Jones Industrial Average dropping more than 840 points, roughly 1.6%. Bitcoin also fell below $64,000 in the hours following Warsh’s remarks. Nine of the eighteen FOMC officials now anticipate at least one rate hike before year-end, catching traders off guard. The Fed held interest rates steady at its July meeting, but Warsh refused to offer any forward guidance or hints at future cuts.
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