The most important event this week for Bitcoin (BTC), cryptocurrencies and global markets will be the Jackson Hole meeting.
The meeting, held every year in Jackson Hole, Wyoming, USA, is closely followed by the banking industry.
The meeting, attended by representatives of central banks from developed and developing countries around the world, will be held between August 21-23 this year.
The theme of this year’s Jackson Hole meeting will be “Labor Market Transformation: Demography, Productivity, and Macroeconomic Policy.”
All Eyes Will Be on the Fed Chair’s Speech!
Given the lack of any interest rate cuts this year and the diminished expectations for September following last week’s macro data release, statements from FED Chair Jerome Powell will be closely watched.
It is particularly noteworthy what outlook Jerome Powell, who has faced various threats from US President Donald Trump for not lowering interest rates this year, will present for monetary policy after September.
At this point, the Fed Chairman is expected to make statements about interest rate cuts and give clues about the direction policymakers are heading in his speech on Friday, August 22, at the Jackson Hole meeting, which is considered the “Davo of the world’s central bankers.”
But some analysts don’t think a September rate cut is a certainty, and even those who expect one are skeptical that Powell will hint at a rate cut at Jackson Hole.
While investors still see an 85% chance of a September rate cut, according to Fed Watch Tool data, Bank of America expects interest rates to remain steady and warns that tariffs and inflation stabilization could keep policy tight for longer.
Paul Ashworth, chief economist for North America at Capital Economics, said he expects the Fed chairman to warn in Jackson Hole, as he did at a press conference following the July policy meeting, that “a moderately restrictive policy stance remains appropriate.”
At the same meeting last year, Powell declared it “time to adjust policy,” and the Fed soon decided to cut interest rates by 50 basis points. Therefore, it is certain that Powell’s statements this year will also be directional in the markets.
*This is not investment advice.