FED Chairman Jerome Powell Speaks in Jackson Hole! Here Are the Highlights and Bitcoin's Reaction!

Fed Chairman Jerome Powell began his highly anticipated speech in Jackson Hole, Wyoming.

The highlights of Powell's speech at the Jackson Hole symposium, which said it was time to lower interest rates, are as follows:

• Four and a half years after the emergence of COVID-19, the dire economic picture associated with the pandemic is behind us.
• Inflation has fallen significantly.
• Our goal was to restore price stability while maintaining a strong labor market and avoid the sharp increases in unemployment that characterized previous deflationary periods when inflation expectations were less anchored.
• We have made significant progress toward that outcome. While our mission is not complete, we have made significant progress toward that outcome.
• At this point, it is time for the Fed to adjust its policy. It is time for policy to adapt.
• We will do everything we can to support a strong labor market while making progress toward price stability.
• We have made significant progress towards the goal of price stability while avoiding sharp increases in unemployment.
• My confidence that inflation is heading towards 2% has increased.
• Inflation has decreased significantly and we are now much closer to the target.
• Our restrictive monetary policy has helped restore the balance between aggregate supply and demand, easing inflationary pressures and keeping inflation expectations well anchored. Inflation is now much closer to our target. After a pause earlier this year, progress towards our 2% target has continued. I am more confident that inflation is on a sustainable path to 2%.
• Overall, the economy continues to grow at a solid pace. However, inflation and labor market data show an improving situation. Upside risks to inflation have receded. Downside risks to employment have increased.
• The time has come to adjust policy. The direction is clear and the timing and pace of rate cuts will depend on incoming data and the balance of risks.
• “The current level of our policy rate gives us sufficient room to respond to any risks we may face, including the risk of further undesirable weakening in labor market conditions.”

Bitcoin's price action during Powell's speech:

The Fed chairman's speech at the annual central bankers' conference comes at a time of heightened uncertainty about the economy and interest rate policy. While the market is certain of a September rate cut, opinions are divided on whether the rate cut will be 25 basis points or 50 basis points.

The news will be updated as details come in…

*This is not investment advice.