Powell Hints at Rate Cut in Jackson Hole Speech, Bitcoin Surges

Powell Hints at Rate Cut in Jackson Hole Speech; Markets React Boldly

Jackson Hole, Wyoming — August 22, 2025.

Federal Reserve Chair Jerome Powell delivered what may be his final Jackson Hole address—folded into a delicate dance between cooling labor markets, stubborn inflation, political pressure, and evolving Fed strategy. Although he stopped short of an explicit commitment, Powell’s remarks tipped the scales toward a potential rate cut already slated for September.

“Shift in Balance of Risks” Signals Caution—and Optimism

Delivering a line investors were watching intently, Powell stated that a “shift in balance of risks may warrant adjusting our policy stance.” That phrase sparked an immediate response: U.S. equities rallied, and notably, Bitcoin surged to $114,000, highlighting the market's eagerness for easing. :contentReference[oaicite:2]{index=2}

Market Mood Swings in Real Time

The speech jolted investor sentiment: futures briefly surged, and volatility indicators rose. While optimism was tempered by lingering concerns over inflation and political uncertainty, Powell’s dovish tilt nonetheless momentarily buoyed the market.:contentReference[oaicite:3]{index=3}