Warsh's Jackson Hole Speech Looms Large After Hot US Inflation Data

US inflation remained above the Federal Reserve's target in July, causing Bitcoin to fall below $78,600 as Treasury yields and the dollar rose. The PCE price index climbed 3.7% from a year earlier, above the 3.6% consensus estimate and nearly double the Fed's 2% inflation target.

The data led investors to weigh whether the Fed will prioritize inflation control or a slowing economy, with Chair Kevin Warsh's Jackson Hole speech now the next major policy event. The 10-year Treasury yield rose to roughly 4.65%, and the US dollar strengthened following the data, while gold fell about 0.86%.

Markets are now awaiting Warsh's address at the Jackson Hole Symposium on Friday, which is expected to provide a clearer indication of how the Fed views inflation, interest rates, and economic growth. If Warsh stresses inflation risks, markets could expect rates to stay higher for longer, weighing on Bitcoin and other risk assets.