Bitcoin Nears $60K as Fed Chair Warsh Signals Easing Inflation Risks

Bitcoin (BTC) moved back toward the $60,000 level on Wednesday after Federal Reserve Chair Kevin Warsh said inflation risks had eased, while reiterating the central bank’s commitment to returning inflation to its 2% target.

Warsh did not offer guidance on the Fed’s next interest-rate move, saying policymakers will assess incoming data at their meeting in four weeks during a panel at the European Central Bank’s annual forum in Sintra, Portugal.

He instead stressed that the Federal Reserve remains firmly focused on price stability.

“Inflation risks have come down,” Warsh said, adding that anyone expecting the Fed to tolerate inflation above 2% would be disappointed. “We’re going to deliver price stability in the U.S.”

Following his remarks, bitcoin trimmed earlier losses and climbed back near $60,000, rising more than 2% over the past 24 hours, according to CoinDesk data.

Warsh also highlighted artificial intelligence as a potentially transformative force for the U.S. economy, saying the rapid increase in AI-related capital spending is currently boosting demand but may eventually expand the economy’s supply side.

He noted that, unlike past cycles driven by financial engineering such as share buybacks, companies are now investing in anticipation that AI will enhance productivity and output. If successful, this shift could have major implications for monetary policy, though he said it is still too early to assess the full impact.

The discussion also featured European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, and Bank of Canada Governor Tiff Macklem. All broadly agreed that central banks should move away from strict forward guidance.

Lagarde said she now prefers “framework guidance,” where the ECB explains its decision-making process without committing to a preset interest-rate path. Warsh echoed that view, saying policymakers should prioritize getting decisions right rather than relying on communication tools that could constrain flexibility.