Powell to Speak, Could Markets Explode?
Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech on Friday, August 22, 2025, at 10:00 a.m. ET at the Jackson Hole Economic Symposium hosted by the Federal Reserve Bank of Kansas City. The speech will discuss the US economic outlook and monetary policy framework, with a focus on whether the Fed will continue cutting interest rates in September.
Global markets are currently in a wait-and-see situation. The US dollar (DXY) is consolidating as investors remain cautious ahead of Powell's speech. If Powell confirms a rate cut, the DXY could weaken further, but if his tone is more cautious, the dollar could strengthen again.
Major commodities such as gold and silver are also affected. Gold prices, currently hovering at a high range, are expected to rise if Powell signals a rate cut, as falling bond yields support non-yielding assets. Silver also has the potential to strengthen, following gold's lead. Conversely, if Powell lowers market expectations, the precious metal could correct.
Meanwhile, oil prices tend to be sensitive to the outlook for economic growth. If Powell's speech increases optimism about interest rate cuts and supports the energy demand outlook, oil prices could stabilize. However, a hawkish tone risks depressing oil prices due to concerns about global demand.
The crypto market is also awaiting the Fed's direction. Digital assets like Bitcoin and Ethereum typically benefit from loose liquidity sentiment. If Powell clears the way for an interest rate cut, crypto could continue its rally. Conversely, a cautious stance from the Fed could restrain capital inflows into risky assets. (ayu)
Source: Newsmaker.id
