BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
FOLLOW
BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
BlockNews

Fed Jerome Powell Hints That Rate Cuts are Very Close and Here is Why

by Sham
August 23, 2024
in Featured, Finance
A A
Fed Jerome Powell Hints That Rate Cuts are Very Close and Here is Why
2
SHARES
Share on TwitterShare on Reddit
  • Bitcoin’s price rose 1.8% to $61,500 after Federal Reserve Chairman Jerome Powell signaled that interest rate cuts are imminent, suggesting the central bank is pleased with cooling inflation while being more attentive to growing weakness in the labor market.
  • Powell said the “direction of travel is clear and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks,” indicating that the Fed will ease up in its inflation fight after holding its benchmark interest rate steady since July 2023.
  • While taking a more restrictive monetary stance, the Fed had to navigate curveballs like snarled supply chains that lasted much longer than expected because of extended COVID-19 lockdowns in China, as well as severe shocks to energy and commodity markets, as it aimed to rein in rising prices.

Federal Reserve Chairman Jerome Powell recently signaled that interest rate cuts are on the horizon, causing the price of bitcoin to rise.

ICYMI: 🇺🇸 Jerome Powell stated earlier today “the time has come for the policy to adjust” 👀

— BlockNews.com (@blocknewsdotcom) August 23, 2024

Powell Signals Rate Cuts Are Coming

In a keynote address at the Jackson Hole Economic Policy Symposium on August 23, 2024, Powell stated “the direction of travel is clear and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks.”

This suggests the Fed is pleased with cooling inflation and more concerned about weakness in the job market. Markets are now confident the Fed will ease up on rate hikes after holding steady since July 2023.

How This Impacts Monetary Policy

The Fed has been raising rates to combat soaring inflation that hit a 40-year high. Now that consumer prices are slowing, the Fed appears ready to stimulate growth by cutting rates.

Powell cited an improving ratio of job vacancies to unemployment as evidence the labor market has stabilized. With inflation pressures diminishing, the Fed can focus more on maximizing employment.

Crypto Markets React Positively

Bitcoin’s price rose over 3% following Powell’s remarks, rallying above $62,000 briefly. Ethereum and Solana also popped, increasing 27% and 21% respectively.

Lower rates typically benefit risk assets like crypto. As the cost of borrowing decreases, investor appetite expands.

Conclusion

Jerome Powell signaling impending rate cuts was welcomed by cryptocurrency markets. With inflation steadying, the Fed can take its foot off the brake and get back to encouraging economic growth and job creation. The crypto sector stands to benefit from the resulting influx of risk-on sentiment.

Tags: BitcoinFederal ReserveJerome Powellrate cutsSolana
Tweet1ShareShare1

DON'T MISS THESE! HOT OFF THE PRESS

XRP at a Crossroads: Only Two Ways This Can Go
Crypto

XRP at a Crossroads: Only Two Ways This Can Go

June 20, 2025
Polymarket Thinks US Stablecoin Bill Is a Near Lock—But Will It Actually Pass?
Crypto

Polymarket Thinks US Stablecoin Bill Is a Near Lock—But Will It Actually Pass?

June 20, 2025
Semler Plans 105K Bitcoin by 2027 After Vet Crypto Hire
Bitcoin

Semler Plans 105K Bitcoin by 2027 After Vet Crypto Hire

June 19, 2025
SHIB Slides to Two-Month Low as Bears Eye Key Support Level
Crypto

SHIB Slides to Two-Month Low as Bears Eye Key Support Level

June 19, 2025
XRP at a Tipping Point: Breakout or Breakdown?
Crypto

XRP at a Tipping Point: Breakout or Breakdown?

June 19, 2025
Who Will Win the Layer 1 Crypto War? These Are the Chains to Watch Right Now
Cardano

Who Will Win the Layer 1 Crypto War? These Are the Chains to Watch Right Now

June 19, 2025
Load More

Related News

XRP at a Crossroads: Only Two Ways This Can Go

XRP at a Crossroads: Only Two Ways This Can Go

June 20, 2025
Polymarket Thinks US Stablecoin Bill Is a Near Lock—But Will It Actually Pass?

Polymarket Thinks US Stablecoin Bill Is a Near Lock—But Will It Actually Pass?

June 20, 2025
Semler Plans 105K Bitcoin by 2027 After Vet Crypto Hire

Semler Plans 105K Bitcoin by 2027 After Vet Crypto Hire

June 19, 2025
SHIB Slides to Two-Month Low as Bears Eye Key Support Level

SHIB Slides to Two-Month Low as Bears Eye Key Support Level

June 19, 2025
XRP at a Tipping Point: Breakout or Breakdown?

XRP at a Tipping Point: Breakout or Breakdown?

June 19, 2025
Discord Twitter Youtube TikTok Instagram

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • Home
  • Crypto
  • Memecoins
  • Technology
  • Politics
  • Finance
  • NFT
  • DeFi
  • Opinion

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.