Powell Hints September Rate Cut at Jackson Hole, Crypto Rally

At the August 22 Jackson Hole symposium, Federal Reserve Chair Jerome Powell signaled that the FOMC could implement a rate cut as early as September if inflation and labor data weaken. He warned that high tariffs and tighter immigration policy continue to fuel inflation and constrain labor‐force growth, and stressed that monetary decisions will rely solely on incoming data. Inflation remains “somewhat elevated,” and tariff effects on prices have yet to fully materialize. Although the labor market is still strong, reduced supply and demand for workers may trigger job cuts. Futures markets now price in an 85% chance of a September rate cut, prompting traders to anticipate shifts in monetary easing. Powell’s speech sparked a short‐lived crypto rally, lifting Bitcoin (BTC), Ethereum (ETH), gold and U.S. equity futures before markets retraced. Some analysts called it the first real opening for rate cuts, while others remain cautious amid persistent inflation. For crypto traders, a confirmed rate cut could drive a rotation from bonds into risk assets and fuel a sustained crypto rally. Key U.S. data—nonfarm payrolls on September 5 and CPI on September 11—will be closely monitored for signs of easing and the next leg up in the crypto market.