Inflation Relief Narrative Pushes Bitcoin Closer to $60,000 Mark

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

Warsh did not offer any indication of the Fed’s next policy move, saying officials would assess incoming economic data at their meeting in four weeks during a panel at the European Central Bank’s annual forum in Sintra, Portugal.

He instead reiterated that the Fed’s priority remains firmly on price stability.

“Inflation risks have come down,” Warsh said, adding that any expectation of the Fed accepting inflation above 2% would be mistaken. “We’re going to deliver price stability in the U.S.”

After his remarks, bitcoin recovered from earlier declines and traded back near $60,000, up more than 2% over the past 24 hours, according to CoinDesk data.

Warsh also pointed to artificial intelligence as a potentially transformative force for the economy, saying the surge in AI-related investment is currently boosting demand but could eventually expand productive capacity.

He noted that, unlike earlier cycles driven by financial engineering such as share buybacks, firms are now investing on the expectation that AI will significantly enhance productivity. If that materializes, it could have meaningful implications for monetary policy, though he said it is still too early to judge.

The panel also included European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, and Bank of Canada Governor Tiff Macklem, who broadly agreed that central banks should move away from explicit forward guidance.

Lagarde said she prefers “framework guidance,” where the ECB explains its decision-making process without committing to a fixed policy path. Warsh echoed that view, arguing that policymakers should focus on making the right decisions rather than relying on communication tools that may limit flexibility.