Federal Reserve Chair Jerome Powell signalled the US central bank may soon pivot toward easier monetary policy, telling the Jackson Hole Economic Policy Symposium that “the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance
Federal Reserve Chair Jerome Powell signalled the US central bank may soon pivot toward easier monetary policy, telling the Jackson Hole Economic Policy Symposium that “the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.” The remarks, delivered after five consecutive meetings with rates on hold, sharpen expectations that policymakers could lower borrowing costs as soon as their 16-17 September gathering.
Risk assets reacted swiftly. Bitcoin jumped from about $112,000 to a record $116,600 within minutes of Powell’s speech, while Ethereum gained almost 9% to roughly $4,650, approaching its all-time high. Solana and other major tokens also advanced, and the total value of digital assets neared $4 trillion, according to CoinGecko data.
Powell tempered his dovish tone by warning that inflation remains elevated and that the full impact of Washington’s 145% tariff on Chinese goods has yet to appear in price data. Even so, traders increased bets on at least one rate cut this year, with swap markets now implying a move at the September meeting.
The prospect of looser policy also rippled into equity markets: crypto-linked stocks such as Coinbase and mining firms rose, and Ether-focused exchange-traded funds drew net inflows after four days of redemptions. Analysts said a confirmed rate reduction would likely reinforce the nascent rebound in digital-asset prices, which had been under pressure ahead of Powell’s address.
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Source: https://thedefiant.io/news/markets/bitcoin-jumps-to-116000-powell-hints-fed-rate-cut-24bcd223
