Bitcoin Jumps 4% as Fed Chair Jerome Powell Alerts Potential Price Cuts

[ad_1] Federal Reserve Chair Jerome Powell signaled a doable rate of interest lower in September, prompting a rally throughout monetary markets on Friday. His feedback on the Kansas Metropolis Fed’s annual Jackson Gap symposium struck a extra dovish tone than buyers had anticipated.

Powell Flags Employment Dangers

Powell mentioned the steadiness of dangers is shifting and warned of potential weak point within the labor market. “Draw back dangers to employment are rising,” he mentioned. “If these dangers materialize, they'll accomplish that rapidly within the type of sharply greater layoffs and rising unemployment.”

Markets had anticipated Powell to stay to a firmer line. Forward of his speech, merchants noticed solely a 69% likelihood of a September fee lower. Following his remarks, these odds surged to just about 90%, based on CME FedWatch.

Following Powell's remarks, Bitcoin rose about 4%, buying and selling at $116,834 on the time of publication. The cryptocurrency had fallen practically 10% over the previous week from a document excessive above $124,000 as easing expectations light. Ether additionally recovered, gaining nearly 8% after a 12% drop earlier within the week.

U.S. equities moved greater, with the Nasdaq reversing a part of its latest 3% decline. Treasury yields eased, with the 10-year falling six foundation factors to 4.27%. The greenback index slipped 0.5% whereas gold added 0.6%.

Unstable Week for Markets

Powell’s feedback rapidly shifted sentiment. With the Fed now seen as extra more likely to transfer in September, buyers are making ready for one more spherical of volatility as financial knowledge and central financial institution alerts information the weeks forward.

JUST IN: 🇺🇸 Fed Chair Jerome Powell suggests present circumstances 'could warrant' rate of interest cuts. pic.twitter.com/Ogn5NsxHOz

— Watcher.Guru (@WatcherGuru) August 22, 2025 Jerome Powell steps onto the Jackson Gap stage this Friday carrying the burden of politics, markets, and his legacy, CNBC reported. In what is anticipated to be his last keynote on the Federal Reserve’s annual gathering, the Fed Chair faces the fragile job of balancing coverage course with rising political scrutiny.

Traders and policymakers alike might be watching carefully to see whether or not Powell hints at a September fee lower or redefines the central financial institution’s long-term technique.

Powell has spent a lot of his tenure reinforcing the Fed’s independence within the face of relentless political strain. President Donald Trump has repeatedly pressed him to chop rates of interest, whereas newer criticism has prolonged past financial coverage to disputes over Fed initiatives and even accusations towards Fed officers.