Bitcoin Jumps 4% as Fed Chair Jerome Powell Signals Possible Rate Cuts

Federal Reserve Chair Jerome Powell signaled a possible interest rate cut in September, prompting a rally across financial markets on Friday. His comments at the Kansas City Fed’s annual Jackson Hole symposium struck a more dovish tone than investors had anticipated.

Powell Flags Employment Risks

Powell said the balance of risks is shifting and warned of potential weakness in the labor market. “Downside risks to employment are rising,” he said. “If those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment.”

Markets had expected Powell to stick to a firmer line. Ahead of his speech, traders saw only a 69% chance of a September rate cut. Following his remarks, those odds surged to nearly 90%, according to CME FedWatch.

Following Powell's remarks, Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term rose about 4%, trading at $116,834 at the time of publication. The cryptocurrency had fallen nearly 10% over the past week from a record high above $124,000 as easing expectations faded. Ether also recovered, gaining almost 8% after a 12% drop earlier in the week.

U.S. equities moved higher, with the Nasdaq reversing part of its recent 3% decline. Treasury yields eased, with the 10-year falling six basis points to 4.27%. The dollar index slipped 0.5% while gold added 0.6%.

Volatile Week for Markets

Powell’s comments quickly shifted sentiment. With the Fed now seen as more likely to move in September, investors are preparing for another round of volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term as economic data and central bank signals guide the weeks ahead.

JUST IN: 🇺🇸 Fed Chair Jerome Powell suggests current conditions 'may warrant' interest rate cuts. pic.twitter.com/Ogn5NsxHOz

— Watcher.Guru (@WatcherGuru) August 22, 2025

Jerome Powell steps onto the Jackson Hole stage this Friday carrying the weight of politics, markets, and his legacy, CNBC reported. In what is expected to be his final keynote at the Federal Reserve’s annual gathering, the Fed Chair faces the delicate task of balancing policy direction with rising political scrutiny.

Investors and policymakers alike will be watching closely to see whether Powell hints at a September rate cut or redefines the central bank’s long-term strategy.

Powell has spent much of his tenure reinforcing the Fed’s independence in the face of relentless political pressure. President Donald Trump has repeatedly pressed him to cut interest rates, while more recent criticism has extended beyond monetary policy to disputes over Fed projects and even accusations against Fed officials.