XRP Plunges 5% After Fed Chair Warsh Warns of Higher Inflation

The price of XRP dropped sharply after Federal Reserve Chair Kevin Warsh's hawkish comments on inflation during his first Jackson Hole speech. The cryptocurrency fell to around $1.38 on Friday, representing a decline of roughly 5% over the past 24 hours, according to CoinGecko data.

Warsh noted that 54% of PCE inflation components had risen by more than 3% over the past 12 months, stating 'None of these measures are perfect, but they all tell a similar story: inflation is running above our 2 percent target.'

The Fed chair also emphasized that short-term interest rates remain the central bank's primary tool for achieving its dual mandate. This has led to market participants pricing in the possibility of another interest rate hike as soon as the September Federal Reserve meeting, if inflation fails to improve.