Fed Hike Looms: Will Warsh's Comments Spark Another Crypto Selloff?

The Federal Open Market Committee (FOMC) is set to announce its decision on interest rates today at 2:00 PM EDT, and markets are expecting a 25-basis-point hike. This would move the federal funds rate from 3.50%, 3.75% to 3.75%, 4.00%, marking the Fed's first rate hike in three years.

However, traders are looking beyond today's decision and are watching Chair Kevin Warsh's comments for clues about future rate hikes. The markets have shifted from expecting two hikes to pricing in at least three by June 2027, with former Fed Vice Chair Richard Clarida warning that another hike could follow.

'If we get a hike next week, certainly we'll get additional ones,' Clarida said. 'This is certainly not one and done.'