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The price of Bitcoin 
$105,266 has risen above $89,000, aiming for $90,000 at the time of writing. However, comments from a Federal Reserve member have created confusion. Is Kashkari hinting at knowledge regarding tomorrow’s inflation data?
Fed Interest Rate Reductions
During an ongoing speech, Fed member Kashkari indicated that if inflation surprises with a rise, there may be a pause in rate cuts in December. Today, according to the FedWatch tool, a 25 basis point cut was expected at the Fed’s meeting in 36 days. The upcoming inflation data is anticipated to show an increase to 2.6%, up from the previous 2.4%, while core inflation is expected to remain unchanged at 3.3% from the previous month.
If the discussion around pausing rate cuts arises based on the inflation data, could Kashkari be preparing the markets for something? We will receive answers in a few hours. Key points from ongoing comments include:
“The Fed will not model the effects of Trump policies on the economy until they are clear. A one-time increase in tariff prices is not inherently inflationary. I do not want to declare victory on inflation, but I have good reason for confidence. Given the dynamics in the housing sector, it may take one or two years for inflation to drop to 2%. The strong labor market is encouraging, and the economy appears strong. If inflation surprises to the upside before December, this could lead us to pause. In a higher production environment, the neutral rate is higher, meaning less room for the Fed to cut rates. We are modestly restrictive.”
