#PowellWatch ⚡ THE “UNUSUAL SILENT MARKET” BEFORE POWELL'S SPEECH AT JACKSON HOLE
Volatility in most markets — from Bitcoin, gold, bonds to stocks — has dropped to record lows as investors await signals from Fed Chair Jerome Powell (August 21–23).
📉 Highlights:
30-day BTC volatility decreased to ~36% – the lowest in 2 years.
The VIX index (“fear gauge” of Wall Street) fell below 14%, compared to 45% in April.
Bond yields, gold, and even FX majors have all seen strong “contraction of volatility.”
📊 Expectations: The Fed may cut rates by 0.25% in September and bring rates down to 3.25–3.5% by Q1/2026. Powell is expected to “pave the way” for a new easing cycle.
⚠️ Downside: Some experts warn that the market is too complacent, especially as inflation remains “stubborn” and Trump’s tax policy could slow growth. Goldman Sachs emphasizes: “It is advisable to stay defensive, as the risk of economic slowdown remains significant.”
👉 Will Powell soothe the market with a rate cut signal, or reignite volatility?