Jerome "LATE" Powell

Hello friends,

Today we had an important moment with Jerome Powell speaking in Jackson Hole. For many months, Powell was very firm that interest rates should stay high because of inflation. But now the tone changed. He suggested that the Federal Reserve could start cutting rates soon!!
Maybe in September, if the economy continues to "slow down".

He was careful, of course. He said the Fed will look at the data before taking action. But it is clear that he is preparing the ground. The big concern is not inflation, it's the job market. Employment numbers are showing weakness, and Powell admitted that this could be a bigger problem for the economy than inflation.

Markets reacted immediately! Stocks jumped higher, bond yields going down, and the dollar too. Many investors now think a 25 point cut in September is very possible, and maybe even more cuts later in the year. It is amazing how fast sentiment can change! Just a few months ago any expert expected this.

For us watching Bitcoin, this is also relevant. If interest rates go lower, liquidity comes back with force. That usually brings more demand for risk assets, and Bitcoin is always the best one!
Rate cuts are like fuel for markets, especially in a moment where we also have ETFs and institutional demand growing.

But it also shows something important: Central banks are not in full control. They move between inflation and unemploymnet. They are forced to change the strategy, because the system is fragile.

My personal view is that Powell’s speech today will be remembered as a turning point. If cuts really happen, we could see a new bullish wave in markets. For Bitcoin, this could be one more reason for the price to keep moving higher in the next months!!

Stay patient, keep stacking sats, and enjoy the ride.
Have a great weekend!

Posted Using INLEO