Odds against rate cuts high as new US Fed chair set for swearing in
Kevin Warsh sworn in as US Federal Reserve chair amid low odds for rate cuts. Prediction markets show only 38.2% chances of cuts before 2027, down from 96% in February. CME FedWatch indicates 98.8% probability rates stay unchanged through June. Trump previously pressured Powell for cuts; Warsh's independence concerns persist. Next FOMC meeting June 16.
Key takeaways
- 1Kevin Warsh sworn in as Fed chair; prediction markets show only 38.2% odds of rate cuts before 2027, down from 96% in February.
- 2CME FedWatch indicates 98.8% probability US Fed rates remain unchanged through June, with next FOMC meeting scheduled for June 16.
- 3Concerns raised about Fed independence under Warsh; Trump previously pressured Powell for rate cuts and expects Warsh to do the same.
Coins in this story
Why it matters
Higher US interest rates reduce capital inflows to emerging markets like India and increase borrowing costs for Indian companies with dollar debt. Warsh's potential rate-cut resistance could keep US rates elevated longer, affecting rupee stability and Indian asset valuations.
Explore how RWA is shaping crypto markets — aggregated stories, leading coins, and weekly momentum.
Explore narrativeRelated stories
Bitcoin Miners Emerge as Unlikely Power Brokers in AI Infrastructure Race, Says Bernstein
Bitcoin miners are positioning themselves as critical infrastructure providers in AI computing, according to Bernstein analysis. Major mining operations leverage excess power capacity and hardware to support AI chip deployment, creating new revenue streams beyond cryptocurrency. This shift highlights miners' evolving role as data center operators rather than purely blockchain participants, potentially reshaping industry economics and profitability dynamics for BTC holders.
TD Cowen Raises Strategy (MSTR) Price Target to $400 on Bitcoin Accumulation and Balance Sheet Shift
TD Cowen raised MicroStrategy's (MSTR) price target to $400, citing aggressive bitcoin accumulation and strategic financing shifts. The company holds 843,738 BTC—over 4% of total supply—valued near $64 billion. Using preferred equity instead of common stock issuance reduces dilution, improving bitcoin-per-share metrics. Analysts project $15 billion in bitcoin gains for 2026, though MSTR remains volatile and correlated with bitcoin price movements.
After Nearly a Decade, Gary Gensler's Poster Child for Crypto Compliance Executes Its First Trade
After weathering years of industry skepticism and navigating a shifting regulatory landscape, Prometheum executed its first crypto trades....