22.08.2025 19:13
The message that the markets have been eagerly awaiting has arrived. Speaking at the annual meeting held in Jackson Hole, Fed Chairman Jerome Powell hinted at the possibility of interest rate cuts, stating, "With the policy being in a restrictive zone, the fundamental outlook and changing risk balance may require us to adjust our policy stance." Following Powell's remarks, notable movements were observed in the markets.
The speech that the markets have been watching closely has taken place.
SIGNAL OF INTEREST RATE CUT FROM THE FED CHAIRMAN
Jerome Powell, the Chairman of the Federal Reserve (Fed), made remarks regarding monetary policy during his speech at the Jackson Hole Economic Policy Symposium hosted by the Kansas City Fed in Wyoming. In his speech, Powell hinted at the possibility of an interest rate cut, stating, "With the policy being in a restrictive zone, the fundamental outlook and changing risk balance may require us to adjust our policy stance."
"THERE IS UNCERTAINTY ABOUT THE LONG-TERM IMPACTS OF POLICIES ON THE ECONOMY"
Powell noted that the U.S. economy has shown resilience throughout the year in the context of significant changes in economic policies, stating that the labor market is operating close to maximum employment and that inflation, while still somewhat high, has significantly decreased from its peaks following the COVID-19 pandemic.
Pointing out that the economy has faced new challenges this year, Powell explained that significantly rising tariffs have reshaped the global trading system, stricter immigration policies have led to a sudden slowdown in labor growth, and in the long term, changes in tax, spending, and regulatory policies could also have significant effects on economic growth and productivity. Fed Chairman Powell stated, "There is significant uncertainty about where all these policies will ultimately lead and what their lasting impacts on the economy will be."
MARKETS REACTED
Following the interest rate cut signal from Powell, notable movements were observed in the markets. U.S. stock markets experienced increases in the range of 1.5% to 2.0%, while gold rose by 1% to $3,372 per ounce. The leading cryptocurrency market, Bitcoin, increased by 2.80%, reaching $116,000. The dollar index fell by 0.80% to 97.85. U.S. 10-year Treasury yields also decreased by 1.40%, pulling back to 4.26.