"There is no soft inflation target at the FED": Kevin Warsh

• The U.S. FED keeps interest rates unchanged.
• Kevin Warsh's speech had little impact on the price of bitcoin.

The President of the Federal Reserve (FED) of the United States, Kevin Warsh, led his second meeting of the Federal Open Market Committee (FOMC) on Wednesday, July 29, 2026, since taking office.

As reported by CriptoNoticias minutes ago, the body voted 9 to 3 to maintain the target range for the federal funds rate between 3.50% and 3.75%.

In his speech, Warsh was emphatic in dismissing any softening of the FED's inflation target. "There is no soft inflation target. There is no implicit soft target. Not under the oversight of this committee," he stated, adding: "There is only one target, and it is 2%".

The official acknowledged that the U.S. economy shows "impressive resilience" despite recent shocks, with job creation in line with labor force growth and an unemployment rate with little change.

However, he admitted that inflation remains elevated relative to the central bank's target and that this process, which has already accumulated more than five years above the target, cannot be resolved in nine weeks or with just one month of moderate data.

One of the central themes of Warsh's speech was the change in the FED's communication strategy. The official explained that nominal and real Treasury yields have risen significantly in the 42 days since the last meeting, which he described as one of the largest market rate increases between meetings in the last two decades.

According to Warsh, this occurred despite the committee not changing its interest rate, partly due to the reduction of the forward guidance that the FED previously offered. "Market participants are learning to play the ball, not the referee," he asserted, referring to the fact that financial prices now respond to real data rather than signals from the central bank.

"The central bank does not always need to be the center of attention everywhere and at all times," he added, although he clarified that the committee will not hesitate to act when it deems necessary.

The divided vote, with three members against maintaining the interest rate, reflected what Warsh himself described, already in the question round, as a deliberately confrontational discussion.

"I asked for a good family fight, and I got it," he commented to reporters, although he emphasized that there was broad consensus on the tools and authority of the committee to achieve price stability.

In his speech, Warsh also highlighted the strong growth of business investment related to artificial intelligence, with year-on-year growth rates close to 20% in high-tech equipment and software.

He noted that this phenomenon complicates the reading of the economy's aggregate supply, as, in his words, the magnitude and timing of its effects on supply remain difficult to predict.

Regarding the possibility that inflation data from a single month could influence decisions, he was emphatic during the press conference: "The historical problem of data dependence is the data and the dependence," he said, revealing that he personally pushed for the creation of a working group to review the inflation metrics used by the FED.

When asked about his upcoming speech at the Jackson Hole symposium in August, Warsh admitted that he still does not have a defined direction: "I see it as a blank sheet at this moment," he replied.

As Warsh's speech unfolded, the price of bitcoin fluctuated but remained around $64,000, with no significant changes compared to this morning.

Now that the monthly turmoil of the FOMC meeting has passed, which this time only caused minor tremors, the price of the digital currency awaits other catalysts that may come, for example, from Iran. Developments that anticipate the end of the military conflict (which causes inflationary pressure due to the blockade of oil routes) could be bullish for bitcoin. Conversely, anything indicating the continuation of the war could have a downward impact.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.