Financial Market Predictions After Powell’s Speech: Impact on Crypto and Other Assets

Updated

August 25, 2025

Gambar Financial Market Predictions After Powell’s Speech: Impact on Crypto and Other Assets

Jakarta, Pintu News – At this year’s Jackson Hole economic symposium, Jerome Powell, Chairman of the Federal Reserve, gave a fairly cautious view of current economic conditions. His speech highlighted the risks of rising inflation and a still fragile labor market.

With Powell’s term set to end in May 2026, and his potential successor who may have a softer approach to interest rates, financial markets, including crypto, may be in for significant changes.

Monetary Policy Response to Inflation

Jerome Powell emphasized that rising tariffs have started to affect consumer prices, which is evident from core inflation reaching 2.9% in July. Despite inflationary pressures, Powell pointed out that the labor market is still showing uncertainty, with job growth slowing.

The Federal Reserve’s more flexible approach to its 2% inflation target suggests that it will not rush to cut interest rates unless economic data supports such a move.

This unprecedented policy opens up opportunities for policies that are more responsive to upcoming economic data. However, with political conditions likely to change, markets should be alert to possible changes in Fed leadership that could affect future monetary policy.

Also Read: Ondo Finance (ONDO): RWA Project Claimed to be 10x in 2026, Is it True? Here’s the Analysis!

Impact on Bond and Stock Markets

US inflation falls — Source: Crypto Economy

The US bond market may see a slower and shallower easing path, especially if inflation does not show a convincing decline. This may cause yields on short-term bonds to remain high, and the yield curve may only steepen if there is weakness in growth data.

On the other hand, the US stock market probably won’t see a rapid expansion in stock price multiplication due to the cautious Fed. The stock market will continue to be influenced by each inflation data release and labor update, as well as communications from the Fed. Interest rate-sensitive stocks will probably remain vulnerable to inflation or wage hike surprises that could delay further rate cuts.

Outlook for Cryptocurrencies

In the context of cryptocurrencies, the Fed’s approach of keeping interest rates higher for a longer time could limit speculative flows into altcoins and crypto-related equities.

However, sustained above-target inflation could sustain the hard asset narrative, which supports demand for assets that have scarcity or settlement finality, such as Bitcoin and other large tokens backed by cash flow.

If Powell’s replacement in 2026 is perceived as less cautious, the liquidity cycle could turn more in crypto’s favor. However, the journey to get there will be characterized by higher volatility as markets assess the new leadership and Senate confirmation.

Conclusion

With all this in mind, financial markets, including bonds, stocks, and cryptos, should prepare for a period characterized by patience and volatility. The Fed’s cautious strategy and potential future leadership changes demand market players to pay close attention to upcoming economic data and political dynamics.

Also Read: Notcoin (NOT): Why 100 Billion Supply Could Be a Strength and Risk in the Crypto World

That’s the latest information about crypto. Follow us on Google News to get the latest crypto news about crypto projects and blockchain technology. Also, learn crypto from scratch with complete discussion through Pintu Academy and stay up-to-date with the latest crypto markets such as Bitcoin price today, XRP coin price today, Dogecoin and other crypto asset prices through Pintu Market.

Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app via Google Play Store or App Store now. Also, get a web trading experience with various advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro.

*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. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.