September Rate Cut Announced by Powell, Market Responds Positively?

Jakarta, Pintu News – In the annual Jackson Hole symposium organized by the Federal Reserve, Chairman Jerome Powell signaled that an interest rate cut of 25 basis points in September is highly likely.

However, Powell emphasized that this is not the beginning of a sustained series of rate cuts. The Federal Reserve’s current policy is already in restructive territory, and shifting risks related to employment and inflation are starting to show.

Powell expressed his main concern regarding inflation triggered by import tariffs imposed by the Trump administration.

In his speech, Powell also announced several changes in the Federal Reserve’s operating framework. This shows a proactive response to the current changing economic dynamics.

Market Reaction to Powell’s Speech

The stock market showed a very positive response to the announcement made by Powell. The Dow Jones Industrial Average index surged more than 600 points, reaching a new record high of 45,548.

The rise signals investor optimism for future liquidity conditions and looser monetary policy. Crypto stocks listed on US exchanges also saw gains.

This is due to the expectation that lower interest rates will increase liquidity and risk appetite in the market, which in turn supports digital assets. Nonetheless, with the Federal Reserve still cautious of inflation, market participants realize that the road ahead may not be smooth.

Also read: Philippines Ready to Make History by Keeping 10,000 BTC as National Reserve!

Impact on Crypto Market

Signals from Powell regarding interest rate cuts have significant implications for crypto markets. Lower interest rates tend to increase liquidity and risk appetite, both of which support the value of digital assets like Bitcoin (BTC), Ethereum (ETH) and others.

Crypto investors and traders have welcomed this outlook, despite remaining wary of the Federal Reserve’s strict inflationary policies. Crypto markets often react sensitively to changes in monetary policy as these assets are considered an attractive investment alternative in a low interest rate environment.

Conclusion

Jerome Powell’s announcement at Jackson Hole has brought a breath of fresh air to the stock and crypto markets. Although only one rate cut was indicated, the impact on market expectations and investor behavior was significant.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coinpedia. Fed Chair Powell Signals September Rate Cut at Jackson Hole, Warns on Inflation Risks. Accessed on August 25, 2025
• Featured Image: Investopedia