Bitcoin Surges as Fed Chair Promises Rate Cuts in September

Bitcoin’s price, much in line with that of the US stock market, has experienced an uptick in Friday’s trading session.

This comes on the back of new that the Federal Reserve of the United States is planning to cut interest rates in September.

Jerome Powell at Jackson Hole

The chairman of the Federal Reserve – Jerome Powell – speaking live at the Kansas City Fed’s annual economic conference in Jackson Hole, Wyoming, said that the time has come to cut rates.

“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.”

In addition, he reaffirmed that “inflation is on a sustainable path back to 2%.”

Additionally, he also said that they will shift focus to support the labor market, arguing that:

“… the inflation and labor market data show an evolving situation. The upside risks to inflation have diminished. And the downside risks to employment have increased.”

https://www.reuters.com/business/jackson-hole-live-fed-chair-jerome-powell-2024-08-23/

Bitcoin’s Price Surges on Rate Cut News

Perhaps somewhat expected, Bitcoin’s price has increased on the news.

As seen in the chart, BTC spiked to an intraday high above $62,000 before retracing to where it’s currently trading at $61,770.

That said, the move might also be strengthened by the fact that Robert Kennedy – the leading independent candidate in the US presidential race – has terminated his campaign in Arizona. Many are speculating that he will endorse Donald Trump, strengthening his positions and chances against Kamala Harris. Trump has even announced a special guest for his own rally in Arizona.