Fed's Warsh Signals End of Rate Cuts: Hike Odds Surge to 66%

Forget the rate cuts you thought were coming. Fed Chair Kevin Warsh just dropped the mic on 2026 easing, removing the last projected cut from the FOMC's dot plot. Futures traders are now pricing a 66% chance of a hike before year-end, a seismic shift from earlier expectations. This isn't just a minor tweak; it's a full-blown reversal of market assumptions about cheap money returning. Warsh, true to his reputation, is signaling a leaner Fed with tighter messaging and an inflation-first agenda. The era of Fed forward guidance is over, replaced by a stark focus on price stability. For crypto, this means higher borrowing costs and tighter global liquidity, a direct headwind for assets like Bitcoin that thrive on easy money. The market's assumption of a 2026 pivot has officially run out of road.