The price of Bitcoin rose Friday as Federal Reserve Chairman Jerome Powell teed up rate cuts in the coming months, signaling the U.S. central bank is pleased with cooling inflation while being more attentive to growing weakness in the labor market.
“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,” he said while delivering a keynote address at this year’s Jackson Hole Economic Policy Symposium in Wyoming.
Bitcoin’s price had risen 1.8% to $61,500 over the past day, as of this writing, but briefly popped above $62,000 following Powell's comments. Meanwhile, the price of Ethereum and Solana had increased 2.7% and 2.1%, respectively, to $2,675 and $145.
At this point, markets are confident that the Fed will ease up in its inflation fight after holding its benchmark interest rate steady since July 2023. As of this writing, traders penciled in a 32% chance that the Fed cuts rates by 0.50% in September, while assigning a 67% chance to a 0.25% rate cut, according to CME Fedwatch.
Editor's note: This story is breaking and will be updated with additional details.
