Fed Chair Jerome Powell: Time Has Come for Policy to Adjust

The
question
going
forward
will
be
if
the
Fed
cuts
the
fed
funds
rate
by
25
or
50
basis
points
at
its
mid-September
meeting.
Markets
continue
to
lean
towards
25
basis
points,
but
the
chances
of
a
50
basis
point
move
have
grown
to
32.5%
currently
from
24%
one
day
ago,

according
to
CME
FedWatch.
There
remain
some
key
economic
reports
between
now
and
that
September
decision
–
August’s
employment
and
inflation
numbers
among
them
–
which
should
be
key
to
Fed’s
ultimate
decision.

“Lower
real
interest
rates
tend
to
weigh
on
the
value
of
the
dollar
and
can
support
assets
that
compete
with
the
dollar,
like
gold
and
bitcoin,”
said
Zach
Pandl,
head
of
research
at
Grayscale
Investments.
“The
combination
of
Fed
rate
cuts,
improving
U.S.
political
sentiment
around
crypto,
and
net
inflows
into
U.S.
crypto
ETFs
should
support
bitcoin’s
price
to
return
to
all-time
highs
in
the
coming
months.”