Federal Reserve policymakers are divided on future interest rate hikes, with traders on Kalshi showing a slight majority (54%) expecting a hike this year. The Fed's June meeting minutes revealed differing views among participants regarding the appropriate rate level by year-end.
Federal Reserve officials were split on interest rates last month, with many citing accelerating AI demand as a key driver of inflation. This "chipflation" stems from rising costs of semiconductors and energy for data centers, impacting tech products and electricity prices.
Bitcoin fell below $62,000, down nearly 2% in 24 hours, influenced by a global risk-off mood. A sharp selloff in semiconductor and AI stocks, renewed profit-taking in Asian markets, and rising oil prices due to US-Iran tensions contributed to the downturn. The Federal Reserve's June meeting minutes also added to investor apprehension.
US Treasury yields saw minimal change on Wednesday as markets awaited the Federal Reserve's policy meeting, the first under new Chair Kevin Warsh. Investors anticipate interest rates will remain unchanged, but are keen to observe Warsh's communication style and potential views on future policy.
Tether’s XAUt tops $3.3 billion as gold reserves reach 154 tons, with demand rising amid geopolitical tensions and shifting expectations for Federal Reserve policy.
