Federal Reserve is becoming increasingly aware of stagflation risks – a troubled mix of slowdown of growth and rising inflation that can challenge decision makers.

While President Jerome Powell insisted that the economy is in “good shape” and emphasized that the central bank is in “a good position to wait and see” before changing politics, subtle changes in the central bank’s political statement pointed out on increased concerns about the direction of the economy.

The US Central Bank, which kept its benchmark interest rate today, recognized the growing risk of rising inflation and unemployment – about the definition of stagflation that last appeared throughout a significant part of the 1970s. This scenario would leave the central bank with limited spaces to maneuver to stimulate a debilitating economy without further burning inflation.

“Fed is concerned about stagflation,” Zach Pandl, head of research at Grayscale, posted at X after the decision. “We think the result would be good for Bitcoin.”

In a previous report, Pandl claimed that rising tariffs contribute to stagflation, which historically damage traditional assets, but benefits scarce stores of value as gold. “Bitcoin was nowhere near previous stagflations,” he wrote, “but can be considered a button digital item and is increasingly considered a modern value.”

Bitcoin acted in a tight interval after Fed’s message and Powell’s comments. It touched a map of $ 97,500 earlier Wednesday about optimism about trade negotiations in the US China before returning to the $ 96,500-one increase of 1.6% over the last 24 hours.

Coindesk 20 index (CD20), a wider meter of the crypto market, only 0.3% increased in the same period, weighed by 1% -3% decrease in XRP, Avax, Uni, near and Aave.

Meanwhile, shares were regained modestly from previous losses, with S&P 500 and NASDAQ closed 0.4% and 0.3% higher respectively.