On August 22, 2025, Federal Reserve Chairman Jerome Powell delivered a speech on monetary policy that resonated widely in the markets. Experts noted that some hints from Powell might indicate a readiness to lower interest rates.
Key Points from Jerome Powell's Speech
In his speech at the Jackson Hole symposium, Powell indicated that changes in monetary policy might be necessary. He highlighted that a reduction in interest rates could be relevant given the current economic conditions. Powell also emphasized that the Fed would make decisions based solely on data, and would not yield to external pressures.
Market Reaction to the Speech
The hint at a possible rate cut in September sparked a short-term rally in Bitcoin, Ethereum, gold, and U.S. equity futures. However, by Monday, the markets retraced to pre-speech levels. Expert Scott Melker called this speech a 'significant turning point' for all markets.
Powell's Conflict with Trump and Pressure on the Fed
Powell's speech also touched on his relationship with former President Donald Trump, who had repeatedly called for rate reductions. Despite the pressure from Trump and his supporters, Powell remained independent. The debate over the need for rate cuts continues, leaving many questions regarding the future economic direction of the Fed.
Jerome Powell's speech has sparked numerous discussions about the future of U.S. monetary policy. Potential changes in rates remain a focal point for both equity and cryptocurrency markets amidst economic uncertainty.
