Étienne Girard
On August 22, 2025, Federal Reserve Chairman Jerome Powell delivered a pivotal speech on monetary policy at the Jackson Hole Economic Symposium in Wyoming. Investor and podcast host Scott Melker described it as a “significant turning point for all markets,” highlighting its potential impact across equities, gold, and cryptocurrencies.
During his remarks, Powell hinted at possible rate cuts in September, despite ongoing pressures from political figures including President Trump and some Republican lawmakers. He stressed that FOMC decisions will remain data-driven, emphasizing the Fed’s commitment to its dual mandate: maintaining low inflation and supporting maximum employment.
Powell outlined several hurdles facing the U.S. economy in 2025:
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International trade policy contributing to uncertainty in tariffs.
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Tighter immigration rules slowing labor force growth.
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Potentially unpredictable effects from changes in tax, spending, and regulatory policies.
He noted that certain sectors are experiencing rising prices, and that tariffs may create upward pressure on inflation in the coming months. Regarding the labor market, Powell warned that reductions in both supply and demand could result in significant layoffs if conditions worsen.
Market Reactions and Crypto Implications
The “hint” of rate cuts sparked a short-term rally in Bitcoin, Ethereum, gold, and U.S. equity futures, though markets eventually retraced to pre-speech levels. Analysts emphasized that Powell did not explicitly confirm a rate cut, but the speech was still seen as a signal for potential monetary easing.
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Scott Melker called it a market “turning point,” noting the Fed may be signaling the first real opening for rate cuts.
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Drew Matus, Chief Market Investment Strategist at MetLife Investment Management, expressed caution, warning that slow economic growth and persistent inflation may limit the Fed’s flexibility.
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Steve Liesman, CNBC journalist, highlighted Powell’s focus on tariffs causing gradual price level increases.
Political Pressure on Powell
Powell faces intense political pressure, particularly from former President Donald Trump, who has criticized the Fed’s high interest rates as damaging to the housing market. Some commentators, like Peter Schiff, argue that lowering rates is not a solution to housing affordability and may replicate past financial mistakes.
Additionally, internal dissent exists within the Fed. Governors Michelle Bowman and Christopher Waller voted for rate cuts in July, with Waller considered a potential successor to Powell in May 2026.
Key Takeaways for Investors
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Inflation risks remain tilted to the upside, while employment risks are skewed to the downside.
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FOMC decisions will remain data-driven, regardless of external pressures.
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Crypto markets could respond positively if the Fed implements interest rate reductions.
This speech is being closely watched by investors in traditional and digital assets, as it may mark the first real opportunity for rate easing in a volatile macroeconomic environment.
