- Powell's speech addresses future rate cuts and economic outlook.
- Markets anticipate further rate adjustments in 2025.
- Crypto markets may see increased volatility post-speech.
Jerome Powell, Chair of the Federal Reserve, will discuss rate cut outlook and monetary policy tonight at the National Association for Business Economics Annual Meeting in Philadelphia.
Powell's speech holds significance for cryptocurrency markets, potentially affecting asset volatility and liquidity in response to anticipated changes in monetary policy.
Jerome Powell, Chair of the Federal Reserve, will deliver an important speech at the National Association for Business Economics Annual Meeting. The focus will be the rate cut outlook and monetary policy as inflation persists and the labor market softens.
Powell is expected to address the economic situation following recent rate cuts and provide clarity on future monetary policy. Other Fed officials have also been actively discussing these topics, contributing to shaping perspectives on institutional policy. According to Powell, "My remarks will address the economic outlook and monetary policy, particularly in light of recent data post-September's rate cut."
The market reacts to Fed policies; after the September rate cut, further monetary easing is anticipated. Rate cuts influence assets like ETH, BTC, and other cryptocurrencies, adding volatility as they impact liquidity and risk propensity.
Economic changes affect financial sectors, leading to diverse reactions among businesses. Institutional risk-taking and capital flows can shift in response. Additionally, more accessible borrowing costs increase interest in risk assets, affecting overall market behavior.
Understanding the potential impacts on multiple financial sectors is crucial, from asset volatility to borrowing costs. These changes reflect broader economic implications stemming from central bank decisions.
Historical data suggest that rate cuts can precede rallies in risk assets, increasing interest in protocols and tokens involved in lending or leveraged positions. Monitoring on-chain and option data may offer insights post-announcement.