Bitcoin (BTC) climbed toward the $60,000 mark on Wednesday after Federal Reserve Chair Kevin Warsh said inflation risks had eased, while reaffirming the central bank’s commitment to its 2% inflation target.

Warsh did not provide any signal on the Fed’s next interest-rate move, saying policymakers would review incoming data at their meeting in four weeks during a panel at the European Central Bank’s annual forum in Sintra, Portugal.

Instead, he stressed that the Federal Reserve remains firmly focused on restoring price stability.

“Inflation risks have come down,” Warsh said, adding that expectations of the Fed tolerating inflation above 2% would be incorrect. “We’re going to deliver price stability in the U.S.”

Following the comments, bitcoin reversed earlier losses and traded back near $60,000, gaining more than 2% over the past 24 hours, according to CoinDesk data.

Warsh also highlighted artificial intelligence as a potentially major force for the U.S. economy, saying the ongoing surge in AI-related investment is boosting demand in the near term but could ultimately expand the economy’s supply side.

He noted that, unlike earlier investment cycles driven by financial engineering such as share buybacks, companies are now deploying capital based on expectations that AI will significantly improve productivity. If realized, that shift could carry meaningful implications for monetary policy, though he said it remains too early to assess.

The panel also featured European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, and Bank of Canada Governor Tiff Macklem, who broadly agreed that central banks should move away from explicit forward guidance.

Lagarde said she favors “framework guidance,” where the ECB explains its decision-making process without committing to a preset interest-rate path. Warsh echoed that view, arguing that policymakers should prioritize making the right decisions rather than relying on communication strategies that could constrain flexibility.