Fed Governor Waller Backs Removing Easing Bias, Bitcoin Dips Below $77K

TL;DR On May 22, Fed Governor Christopher Waller signaled support for removing the 'easing bias' from Federal Open Market Committee language, and Bitcoin’s price slipped below $77,000 shortly after.

Context The 'easing bias' in FOMC statements signals that rate cuts are more likely than hikes. Waller, previously seen as a dovish voice, said the Fed should adopt a neutral stance given inflation pressures. The Fed’s preferred inflation gauge, the PCE index, stood at 3.8% in April, nearly double the 2% target. With the labor market stabilizing, Waller argued inflation now drives policy decisions.

Key Facts - Waller announced his backing for dropping the easing bias phrasing on May 22 (announcement). - The PCE index reached 3.8% in April (statistic). - Following his remarks, Bitcoin’s price fell briefly below $77,000, trading around $76,800, a decline of roughly 1.5% and trimming its market cap to about $1.5 trillion (event).

What It Means Waller’s shift suggests the Fed may hold rates steady longer unless inflation shows clear downward movement. Traders who had positioned for near‑term cuts reassessed risk assets, prompting the Bitcoin dip. Neutral language reduces expectations of imminent easing, which can weigh on speculative investments. Market participants will watch upcoming PCE releases, any further FOMC wording changes, and whether other governors echo Waller’s tone to gauge if this becomes a consensus stance.

What to watch next: the June PCE report, subsequent FOMC statements for bias language shifts, and Bitcoin’s reaction to any new inflation data.