The Fed left the federal funds rate unchanged at 3.50%–3.75% in July. The majority preferred to 'skip' — pause to watch inflation data before any move (hike or cut).
Core inflation accelerated to 3.3% in June (from 3.0% in December). Some Fed officials see stickiness above the 2% target and want to 'stay restrictive longer' to cool demand.
Before the dissent, markets priced in rate cuts by Q4. The July dissent shifted expectations to one or two 25-basis-point increases before December 2026.
Bitcoin and Ethereum don't yield interest. When rates rise, the opportunity cost of holding crypto goes up. Higher rate odds = headwinds for crypto valuations.
If this week's CPI and PCE data show inflation cooling faster, the dissent could fade. If inflation stays sticky, more dissenters could emerge at the September meeting.
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