Jerome Powell will give an important speech at Jackson Hole, focusing on U.S. interest rate policy, which significantly affects the cryptocurrency market.
The speech on the topic 'Economic Outlook and Policy Framework Review' is expected to have a strong impact on the global finance and cryptocurrency sectors.
MAIN CONTENT
The Fed may maintain high interest rates before potentially cutting them at the end of the year.
Interest rate cuts affect the value and volatility of the cryptocurrency market.
Jerome Powell is highly regarded for his independence and steadfastness in policy implementation.
Will interest rates be cut in Jerome Powell's speech?
Experts predict that the Fed will keep interest rates high for some time before cutting them at the end of the year. This view follows many previous speeches at Jackson Hole that have guided U.S. economic policy.
In addition, some Fed members like Beth Hammack oppose interest rate cuts due to still significant inflationary pressures. This view makes investors feel concerned, reflecting the Fed's caution in policy decisions.
Economist David Mericle from Goldman Sachs comments that the speech will not immediately announce a September interest rate cut but will signal that the Fed supports this adjustment.
How does interest rate adjustment affect the cryptocurrency market?
Lower interest rates help reduce borrowing costs, boosting the flow of investment, thus leading Bitcoin and altcoin prices to trend upwards as investors seek higher returns in the traditional financial environment.
However, the volatility of cryptocurrencies may also increase when interest rates change, leading to strong price fluctuations and high transaction fees during periods of significant volatility.
The weakening of the USD amid high inflation and interest rate cuts also makes cryptocurrency assets, seen as 'digital gold', more attractive, drawing institutional investor attention and contributing to market clarity.
Why is Jerome Powell highly regarded in the role of Fed Chairman?
Despite facing political pressure and personal attacks, Powell maintains a data-driven interest rate policy stance, demonstrating the Fed's valuable independence in economic management.
Michael Arone, Senior Investment Strategist at State Street Global Advisors, assesses that Powell has maintained independence and focused on the Fed's dual objectives without being influenced by external pressures.
“He has done very well in protecting the independence of the Fed, ignoring the noise and peripheral questions, focusing on the data and the agency's dual mandate.”
– Michael Arone, Senior Investment Strategist, State Street Global Advisors, 2025
This helps Powell maintain trust from experts and ensure stability amid numerous economic and political challenges.
Frequently Asked Questions
How does the current Fed interest rate affect cryptocurrency?
High interest rates reduce the flow of investment into cryptocurrency due to high borrowing costs; conversely, when interest rates decrease, cryptocurrencies may increase in value due to attracting more investment.
Can Powell announce interest rate cuts right at Jackson Hole?
Experts note that while immediate cuts are unlikely, the speech will signal support for potential rate cuts in the near future.
Why is the independence of the Fed important for the economy?
Independence allows the Fed to make objective decisions, free from political pressure, building investor trust and stabilizing the macroeconomy.
How does the cryptocurrency market react to the Fed's interest rate changes?
There is a high likelihood of strong price volatility, with profits increasing or decreasing depending on the direction of interest rate fluctuations and investor sentiment.
What is the expert's prediction about interest rates this year?
Many experts believe that the Fed will keep interest rates high for the foreseeable future, with the possibility of cuts at the end of the year as inflationary pressures decrease.
Source: https://tintucbitcoin.com/powell-phat-bieu-cuoi-hom-nay/
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