Fed flags AI inflation risk as rate hike odds climb above 59%

The Fed's potential rate hikes could tighten liquidity, impacting crypto markets and prompting shifts in capital allocation strategies. The post Federal Reserve minutes reveal support for rate increases, Bitcoin drops 2.7% appeared first on Crypto Briefing.

The post Fed Minutes Flag AI Demand as Inflation Risk as Rate Hike Remains on the Table appeared on BitcoinEthereumNews.com. The latest Fed minutes have highlighted the risk that AI demand could have on inflation as the Fed continues to hold rates steady. The minutes also signaled that a hike is still on the cards if inflation remains elevated and fails to fall to the 2% target. Fed Minutes Flag Inflation Risk Driven By AI Demand The Federal Reserve minutes from the June FOMC meeting highlighted multiple scenarios regarding the outlook for monetary policy. Most participants pointed to scenarios in which the labor market remains stable while inflation remains elevated due to strong AI-related demand, the Middle East conflict, or the effects of tariffs. In such scenarios, almost all of the participants indicated that some policy firming would be necessary to return to their 2% target. Furthermore, the Fed minutes showed that most participants commented on scenarios in which inflationary

AI-driven inflation risks could lead to prolonged high interest rates, impacting economic growth and dampening risk asset attractiveness. The post Federal Reserve cites AI demand as inflation risk in latest minutes appeared first on Crypto Briefing.

The post Bitcoin Price Prediction as Trump Warns of More U.S. Strikes on Iran appeared on BitcoinEthereumNews.com. Bitcoin remained under pressure as U.S.-Iran tensions pushed traders away from risk assets. The BTC price slipped below $62,000 after losing 3.17% in 24 hours to $61,777. The move tracked a wider market pullback, as total crypto market capitalization fell 3.08% to $2.13 trillion. Selling pressure increased after President Donald Trump said the Iran ceasefire was over. He also warned that the U.S. could launch more strikes after accusing Tehran of violating prior agreements. The latest comments unsettled global markets and lifted oil prices. The disruption of supply in case of tension that poses a threat to shipping routes along the Strait of Hormuz was feared by the traders. 🚨 Markets Slide as US-Iran Tensions Escalate President #Trump declared the U.S.-Iran #ceasefire is over, triggering a broad #market selloff.#Oil jumped 5%, major U.S. stock indexes fell, and the crypt

AI demand's inflationary impact may prompt tighter Fed policies, affecting economic stability and market expectations for future rates. The post Fed minutes highlight AI demand as new inflation risk appeared first on Crypto Briefing.

The post Fed flags AI inflation risk as rate hike odds climb above 59% appeared on BitcoinEthereumNews.com. The Federal Reserve has warned that strong artificial intelligence-related demand could keep inflation elevated, while market pricing for a U.S. interest rate hike this year has climbed above 59%. Summary Fed minutes identified AI demand, tariffs, and Middle East tensions as potential drivers of persistent inflation. Most Fed officials said higher rates may be needed if inflation stays above the 2% target. Polymarket now prices a 59% chance of a Fed rate hike this year, while July pause odds remain at 69.5%. According to the minutes of the Federal Reserve’s June Federal Open Market Committee meeting, policymakers discussed several paths for monetary policy depending on how inflation and the labor market develop. One of the scenarios considered involved inflation staying above the central bank’s 2% target despite a stable labor market, driven by strong AI-related demand, the confl

Persistent inflation could lead to tighter monetary policy, impacting economic growth, borrowing costs, and financial market stability. The post Fed officials lean toward rate hikes if inflation persists appeared first on Crypto Briefing.

The post COIN and CRCL Stock Price Prediction Ahead of July 18 GENIUS Act Rule Deadline appeared on BitcoinEthereumNews.com. US federal agencies, including the Federal Reserve and the Treasury, have ten days until the July 18 deadline when they are required to issue guidelines on how the GENIUS Act that was passed in July 2025, will be implemented. The implementation could have an impact on the prices of crypto stocks listed in the US, including Circle (NYSE: CRCL) and Coinbase (NASDAQ: COIN). GENIUS Act Implementation Deadline Nears The GENIUS Act that introduced a regulatory framework for stablecoin issuers was signed into law in July 18 2025 by President Donald Trump. But when Congress passed the bill, they gave US financial market regulators a year to come up with rules that will govern the issuance, licensing, and management iof stablecoin. That one-year period from when the GENIUS Act passed into law ends on July 18, 2026, and the crypto market is waiting to see the rules that th