The crypto and stock markets surged Friday after Federal Reserve Chair Jerome Powell alluded to upcoming rate cuts in a speech at an economic symposium.
While speaking in Jackson Hole, Wyoming, Powell said the economy was growing at a “solid pace” but noted that inflation and labor market data indicated an “evolving situation.”
“The upside risks to inflation have diminished. And the downside risks to employment have increased. As we highlighted in our last FOMC (Federal Open Market Committee) statement, we are attentive to the risks to both sides of our dual mandate.
The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.
We will do everything we can to support a strong labor market as we make further progress toward price stability. With an appropriate dialing back of policy restraint, there is good reason to think that the economy will get back to 2 percent inflation while maintaining a strong labor market.”
CoinGecko reports that the overall crypto market cap surged by 4.6% on Friday, with Bitcoin (BTC) clearing $64,000 for the first time since August 2nd. Meanwhile, the S&P 500 surged by 1.15% on the same day.
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