Powell hinted at cutting down the whales in September, Bitcoin surpassed 115,000 USD, ETH rose to 4,600 USD.

The financial and crypto markets exploded after the speech by the Chairman of the Federal Reserve of America Jerome Powell at the Jackson Hole conference on August 22. Bitcoin BTC rose sharply to 115,200 USD +2%, Ethereum ETH surged to 4,620 USD +6.5%, while the US Dollar Index fell slightly and American stocks rose to the sky.

The reason comes from the clear signal about the possibility of interest rate cuts in September. Powell said: "The underlying outlook and the shift in risks may require a monetary policy adjustment."

However, he also warned that the risk of inflation still leans towards rising due to the impact of new tariff measures, emphasizing:

"We expect these pressures to accumulate over the next few months, with levels and timing that are difficult to predict. The key issue is whether this price increase will raise the risk of prolonged inflation."

Powell affirmed that the Fed will not allow a temporary price increase to become a long-term inflation problem.

Chairman Jerome Powell and his wife attended the Jackson Hole Economic Symposium on August 21, 2025, near Jackson Hole, Wyoming. Powell is expected to give a speech at the economic symposium on Friday. (Photo: Natalie Behring/Getty Images)( Fed keeps interest rates unchanged but signals have changed.

At the meeting on July 31, the Fed kept the interest rate at 4.25%-4.50%. However, after the speech at Jackson Hole, CME Group data showed that the probability of a rate cut in September surged to over 90%.

Inside the Fed, views remain divided. Some officials like Michelle Bowman and Chris Waller want to cut immediately from last month, while regional leaders such as Fed Cleveland President Beth Hammack argue that inflation risks still demand maintaining the current level.

) Labor risk and growth

Powell warns that the job market could deteriorate quickly:

"The risk of job loss is increasing and could occur suddenly, leading to mass layoffs and a rise in unemployment rates."

The July report shows that America only created 73,000 jobs, while the figures for May and June were revised down by 250,000. On average, in the past three months, the number of new jobs has only reached 35,000 per month.

President Donald Trump, who has repeatedly called for a fall in interest rates and criticized Powell, has dismissed the head of the Bureau of Labor Statistics following this disappointing data.

Powell also mentioned the Fed's new policy framework, which focuses more closely on the 2% inflation target rather than the average inflation targeting method. He acknowledged: "The idea of allowing inflation to exceed the target in a controlled manner has become meaningless after inflation rose to the sky unexpectedly in 2021."

The crypto market is strongly benefiting from expectations of loose monetary policy, as investors believe that the Fed will soon cut interest rates to support growth. This trend could create new momentum for Bitcoin, stablecoin, and DeFi in Q4/2025.

Thach Sanh