Fed Chair Powell’s Speech Could Shake Markets—Will Bitcoin Price Rally?
Arslan Butt is a professional live webinar speaker and derivatives (cryptocurrency, forex, commodities, and indices) analyst. He brings a broad range of skills to help beginners evaluate financial...
Federal Reserve Chair Jerome Powell is expected to make waves during his keynote speech at the Jackson Hole Economic Symposium. This annual gathering in Wyoming has long been a platform for central bankers to signal policy shifts, and Powell’s upcoming address could be no exception.
The speech, scheduled for Friday, comes as markets eagerly anticipate hints about potential interest rate cuts.
The Fed’s current benchmark rate is at a 23-year high, ranging between 5.25% and 5.50%. As inflation begins to cool and the labor market shows signs of stabilizing, there is growing speculation that the Fed may start reducing rates as early as September.
As investors closely watch the Federal Reserve’s next move, the anticipation around Chair Jerome Powell’s upcoming speech intensifies.
The markets are already factoring in the potential for a rate cut, with CME Group data suggesting a 75% probability of a 25 basis point reduction in September and a 25% chance of a more significant 50 basis point cut.
“Powell is likely to signal that a rate cut is on the horizon, though he may remain non-committal about its magnitude,” says Matthew Luzzetti, Chief U.S. Economist at Deutsche Bank.
The stakes could rise further if the next jobs report disappoints, increasing the odds of a more substantial cut. Powell’s speech is poised to be a pivotal moment for investors, potentially setting the tone for the markets in the coming months.
Bitcoin (BTC/USD) trades just above the $60,000 mark, supported by an ascending triangle pattern. This pattern typically
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