US stocks and crypto decline ahead of Jackson Hole

The S&P 500 logged its fifth consecutive red session, while total crypto market capitalization fell 1.6% to $3.9 trillion, with $BTCST and $ETH turning lower.

Analysts worry that the Fed’s July meeting minutes released yesterday may be hinting at a hawkish speech at Jackson Hole, as they placed more emphasis on inflation risks than on the slowdown in the labor market.

The Fed’s “hawks” are also gaining momentum, with several officials signaling it is too soon to cut rates:

- Hammack (Cleveland Fed President): No rate cut in September.
- Bostic (Atlanta Fed President): Only one rate cut this year, with inflation still well above the 2% target.

- Schmid (Kansas City Fed President): No rush to cut rates, more solid data needed.

Fed Chair Jerome Powell has already arrived in Jackson Hole, and his speech at 9 PM tonight (Vietnam time) is expected to provide clearer signals on the future path of interest rates.

According to CME data, markets are now pricing in a 76% chance of a September rate cut, down from over 90% earlier this week.