Powell Speech May Signal September Rate Cut

What it is:

Fed Chair Jerome Powell is speaking at Jackson Hole (Aug 22, 2025). Markets are watching closely for signs that the Fed will cut rates in September, with traders pricing in a ~75% chance of a 25 bps cut.

Why it matters:

• Macro impact: A rate cut would weaken the USD, boost equities, and generally support risk assets like Bitcoin, Ethereum, and DeFi tokens.

• Inflation tension: Inflation is still sticky, so Powell may hedge — signaling flexibility without fully committing.

• Politics: With pressure from President Trump for growth before the election cycle, Powell faces unusual political heat.

Implications:

If Powell confirms or hints strongly at cuts, expect crypto and tech stocks to rally. If he stays vague, markets may sell off slightly but still price in September cuts as likely.

Final Takeaways

• Powell speech → Macro wildcard; dovish signals = tailwind for crypto.