Federal Reserve Chair Jerome Powell Set to Signal Rate Cut in September
Federal Reserve Chair Jerome Powell is preparing to announce an anticipated 25 basis point rate cut at the upcoming Fed meeting in September. This decision follows over two and a half years of rigorous monetary tightening. Powell is expected to deliver a keynote speech at the Kansas City Fed’s Jackson Hole Economic Symposium this Friday at 10 am ET.
The financial markets have been eagerly awaiting the re-evaluation of the monetary policy. Traders have already factored in a 100% chance of at least a 25 basis point rate cut at the September meeting. The recent release of the FOMC minutes from the Fed’s July policy meeting further supports the likelihood of a September rate cut, with the “vast majority” of participants signaling its probability.
In addition to signaling the September cut, Powell is likely to take a cautious approach towards easing policy, indicating that the Fed will only trim 25 basis points at the September meeting. Furthermore, the markets are advised not to anticipate a series of continuous rate cuts at future meetings.
While traditional markets such as stocks and gold are experiencing positive trends, Bitcoin has encountered challenges in regaining momentum. US stock markets have been rallying, with the S&P 500 close to its record high and the Nasdaq slightly below its peak. Gold, on the other hand, reached record highs earlier this week, indicating investor confidence.
In contrast, Bitcoin is currently struggling, remaining almost 20% below its all-time high. Despite signs of increasing institutional interest and a positive regulatory outlook, Bitcoin’s performance continues to lag behind traditional markets.
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