Fed’s Powell at Jackson Hole: Willing to Increase Rates as Needed

Addressing the annual Jackson Hole Symposium hosted by the Kansas City Fed, Jerome Powell, the Chairman of the U.S. Federal Reserve, reiterated the necessity of maintaining a restrictive monetary approach until a sustainable slowdown in inflation becomes evident. In his keynote speech, Powell indicated that the central bank remains poised to enact further increases in interest rates, but with a cautious and deliberate approach.

The impact of Powell’s statements on the cryptocurrency market was notable, particularly on Bitcoin (BTC), which experienced an initial minor decline in value following the Chairman’s remarks. However, the cryptocurrency later rebounded, showing slight gains to reach $26,200. This reaction was somewhat expected, given the preceding downward trajectory of Bitcoin’s price as traders braced for Powell’s continued commitment to reining in inflation and aligning it with the Federal Reserve’s targeted 2%.

Market sentiment, as reflected by the CME FedWatch tool, suggests a roughly 20% probability of another interest rate hike during the central bank’s upcoming September meeting. This level of anticipation appears to have remained relatively unchanged before and after Powell’s speech.

Conventional financial markets displayed modest movements, with U.S. stock indices reflecting minor gains of approximately 0.5%. The 10-year Treasury yield, a key indicator, maintained its position close to a 16-year peak at 4.22%. The U.S. dollar index and the price of gold exhibited minimal fluctuations during the session, mirroring the overall stability observed in response to Powell’s remarks.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you