The Fed held the federal funds range at 3.50%–3.75% in a 9–3 FOMC vote and Chair Kevin Warsh emphasized delivering 2% inflation, warning the committee will act as needed while the 10‑year Treasury yield sits near 4.62%. Risk assets briefly rallied—SPY rose 0.17% to $742 and Bitcoin traded near $64,237 (up ~0.84%, $1.29 trillion market cap)—but Warsh’s hawkish tone and elevated long‑end yields pose downside risks for crypto, DeFi, DEX/CEX liquidity and broader adoption.

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In Brief

Warsh tells markets to play the ball, not the referee.
Fed chair defends the 2% target and rejects a softer goal.
SPY turned green, yields eased, and Bitcoin held near $64,237.

Federal Reserve Chair Kevin Warsh told markets on Wednesday to stop trading his intentions and start trading the data. Participants are learning to play the ball, not the referee, he said.

The remark landed hours after the Federal Open Market Committee (FOMC) held rates steady in a 9 to 3 vote. Warsh refused to call the outcome a pause.

Why Warsh Told Markets to Play the Ball

Warsh built his press conference around one message. Inflation sits above target, and the committee intends to bring it down.

The FOMC statement kept the federal funds range at 3.50% to 3.75%. It carried no forward guidance, a clear break from the Jerome Powell era.

Warsh also rejected the idea of a flexible goal. Five years of elevated prices, he argued, left an impression that the Fed quietly tolerated inflation above 2%.

He played down the June core Consumer Price Index (CPI) print as well. The trend matters more than any single month, he said, and inflation cannot be cured in nine weeks.

“We will deliver price stability,” Warsh assured.

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That pledge arrived with a condition. Where necessary and appropriate, Warsh said, the committee will not hesitate to act. His tone marked a shift from his first FOMC presser in June, which pushed risk assets lower.

How Bonds, SPY, and Bitcoin Responded

Warsh flagged that nominal and real yields now sit materially higher across the Treasury curve. The Fed is trying to stay out of that repricing, he added, and let the market signal come through unfiltered.

The 10-year Treasury yield eased to 4.620% after touching roughly 4.650% earlier in the session. Traders had spent the week weighing Fed rate hike odds before three dissenting Fed officials backed a quarter point increase.

The SPDR S&P 500 ETF Trust (SPY) turned positive at $742.00, up 0.17%. Gold spot pushed above $4,100, its strongest level of the session.

Bitcoin (BTC) followed the rebound. Bitcoin’s latest price action put it near $64,237, up 0.84% over 24 hours, with a market capitalization of $1.29 trillion.

Bitcoin, Bond Yield, Gold and SPY Price Performance. Source: TradingView

Even so, the long end stays under pressure after global bond yields climbed to their highest levels since 2008.

Why Peter Schiff Says Warsh Cannot Deliver

Not everyone accepted the framing. Peter Schiff, chief economist and chief executive at Euro Pacific Asset Management, argued that only the language has changed.

“For all of Warsh’s tough talk about the Fed’s newfound commitment to achieving the 2% inflation target it failed to hit under Powell, so far the Fed has done nothing differently with respect to interest rates or its balance sheet. It’s business as usual,” said Schiff.

Schiff pointed to the long end of the curve as his evidence. Investors are selling Treasuries and buying gold, he said, rather than taking the pledge at face value.

Warsh described the weeks ahead as a period of watchful thinking rather than watchful waiting. September will show whether the data, and not the referee, agrees with him. Meanwhile, US President Trump thinks the Fed chair is brilliant.