Kevin Warsh didn’t waste time making his mark. At his very first FOMC meeting on June 17, 2026, the new Federal Reserve Chairman announced five internal task forces designed to rethink how the central bank conducts monetary policy. The reviews will cover everything from how the Fed talks to markets to how it manages a $6.7 trillion balance sheet.

Bitcoin promptly fell toward $64,000, because nothing says “risk-off” quite like a new Fed chair using the phrase “first principles” in the same breath as “inflation framework.”

What the task forces actually cover

The five groups will tackle distinct but interconnected areas of Fed operations: communications strategy, balance-sheet management, data analytics, the impact of automation and AI on employment, and the broader inflation framework.

Reports from all five task forces are expected by the end of 2026, with potential policy revisions rolling out in early 2027.

Warsh has signaled he wants input from both internal staff and external experts. At the European Central Bank Forum in Sintra, Portugal on July 1, 2026, he noted that the task forces would include non-US experts and that staffing details would be disclosed soon.

The balance sheet question

The Fed’s balance sheet currently sits at roughly $6.7 trillion. That’s a significant reduction from its peak of nearly $9 trillion, but it’s still enormous by any historical standard. For context, the balance sheet was under $1 trillion before the 2008 financial crisis.

Interest rates, meanwhile, were held steady at 3.5%-3.75% during the meeting.

Why crypto markets are paying attention

Bitcoin’s slide toward $64,000 following the FOMC meeting wasn’t a panic sell. It was a recalibration. Crypto markets have become increasingly sensitive to Fed policy signals over the past several years, and Warsh’s hawkish posture represents a meaningful shift in the monetary landscape.

The inflation framework review could be the most consequential piece for crypto investors. Any shift away from the current average inflation targeting approach, which allows the Fed to tolerate above-target inflation for extended periods, would likely mean a more aggressive response to price pressures.

Investors should also consider the timeline. Reports landing by year-end 2026 with policy changes potentially starting in early 2027 means several months of uncertainty.