The Fed Just Changed the Rules for Markets | What's Next For Bitcoin? | Bitcoin Simply

**Dante Coco** (0:00)
Kevin Warsh just had his first FOMC meeting, and the markets crashed, despite no major announcements coming out of the meeting. The Fed held rates steady, but that wasn't the story. The story is that they killed the old Fed playbook. He shortened the statement, he avoided sharing his own dot plot for the forecast, he eliminated forward guidance, and he started talking about a task force. That sounds boring, but it's not. That's how the Fed chair builds the machinery for a major market move that the market doesn't know is coming right now. Today, I'm going to show you what Warsh may be preparing for. Why markets panicked, and what it means for Bitcoin when the Fed does what it always does. This is Dante Coco, Bitcoin Simply. Let's go.
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My guy needs to go to jail immediately. And you know what other period in time sucks? FOMC meetings. We've made a theater out of these events and it's crazy that a single person based on their words, what they do say, what they don't say affects the markets in the entire world. And Kevin Warsh's first FOMC meeting was no different. When he took the stand, stocks, Bitcoin and gold sold off. He decided to reiterate that he was going to hold rates steady between three and a half and 3.75 percent. But he did do some things to break the mold. He killed the old Fed Playbook. Listen to what he had to say.

**Kevin Warsh** (1:44)
And commitment to deliver on our price stability objective of 2 percent. That's exactly what we're going to do.
In the Fed's review of its strategy over the last any number of years, in January, the Fed, including the strategy that we're still bound by, the Fed statement says that inflation is primarily determined by monetary policy. You bet it is. I've said for years, inflation is a choice. You bet it is. And today, I'm announcing that this committee unambiguously and unanimously have decided we are going to deliver on that. The rest of your question sounded like encouragement for me to give forward guidance. We've dropped forward guidance.
Some along the committee, I think, dropped it, I suspect, from our discussion the last couple of days, because they said at this moment in time, it doesn't feel as though providing forward guidance is right. Others have, I'd say, different views and think as a general proposition, forward guidance isn't the business we should be in. But that will be taken up by the Task Force on Communications and my policy maker colleagues. We're going to listen hard to what the experts say and make our own decision.

**Dante Coco** (2:55)
We've all heard about the 2% inflation mandate before, how the Fed's going to return us to a 2% target. Okay, that's old news, nothing burger. But removing forward guidance, that's a change. No more handholding, no more clear roadmap, no more markets and AI bot trading algorithms front running what could happen in six months. No more easy money, stocks fell, yields jumped, Bitcoin sold off and gold sold off, like we said earlier in the episode, because markets are now more uncertain. And that causes markets to tighten, because even if they don't know exactly what the Fed's going to do, there's more uncertainty. And when there's more uncertainty, people take less risk. But the most interesting thing about Kevin Warsh's comments at the FOMC meeting was this task force.

**Kevin Warsh** (3:36)
But that'll be taken up by the task force on communications and my policy maker colleagues. We're going to listen hard to what the experts say and make our own decision.

**Dante Coco** (3:46)
Why create a task force? You're the new Fed chair. You can do what you want to do. I'll tell you exactly why. It's so you can delay making decisions. You all can do market listening. You can engage the economy and the economists and the experts on what's actually happening and not make any decisions. Any decision that you do make, you can always fall back on the recommendations of the task force. But ultimately, the main reason is so that they can keep the playbook the same as usual. And the real question isn't what Kevin Warsh does at his first meeting. It's what he does when stuff really hits the fan, when something breaks and something collapses. And I keep banging the table.