Jerome Powell Signals Possible September Rate Cut at Jackson Hole, Bitcoin Surges Past $116K
Federal Reserve Chair Jerome Powell has suggested that a rate cut could be on the table at the upcoming September FOMC meeting, a statement that has fueled a sharp rally in Bitcoin and other cryptocurrencies. Speaking at the Jackson Hole Conference, Powell noted that the balance of risks in the U.S. economy has shifted, particularly with rising weakness in the labor market.
Powell highlighted that downside risks to employment are becoming harder to ignore, with recent job data showing sharp declines. July nonfarm payrolls rose by only 73,000, far below expectations of 147,000, while May and June figures were revised drastically downward. He explained that labor supply is now better aligned with demand, lowering the breakeven job creation rate required to stabilize unemployment.
On inflation, Powell acknowledged that the Trump administration’s tariffs are starting to push consumer prices higher, but also noted that the effects could be temporary rather than persistent. This shift contrasts with the Fed’s earlier stance, where policymakers prioritized inflation risks over employment concerns. 
The Fed Chair’s comments sparked a surge in the crypto market. Bitcoin quickly rallied above $116,000, rising from an intraday low of around $112,000, according to TradingView data. This rebound comes after recent bearish sentiment driven by higher inflation readings, including U.S. PPI data showing a 3.3% year-over-year rise.
Market expectations for a September rate cut have also soared. CME FedWatch data indicates that the odds of a 25 basis point cut now stand at 89.2%, a sharp rebound from 71% just a day earlier. With Powell signaling a more dovish outlook, investors expect renewed liquidity to support risk assets like Bitcoin. 
