In the cryptocurrency market, as in all markets, eyes will be on two important developments this week: The first of these is the Fed minutes and, more importantly, Powell's statements in Jackson Hole.

The cryptocurrency market has entered a new week. This week, there will be two important developments that may affect pricing in the market. The first of these is the Fed minutes to be published on Wednesday. More importantly, Fed Chair Jerome Powell will speak at the Jackson Hole symposium on Friday, which brings together central bank leaders from around the world.

“All the attention will be on Jackson Hole”

Market players are expecting to hear new things about monetary policy from Powell’s speech. Morgan Stanley global chief economist Seth Carpenter, who shared his assessments on the subject, said, “All attention will be on Jackson Hole this week. We expect Powell to focus on the Fed’s medium-term strategy.”

The question that is being asked at this year’s Jackson Hole is how much the Fed will lower interest rates in September. Whether Powell will give a clue about this will be closely monitored. In his speech in 2022, Powell emphasized that what is necessary will be done to reduce inflation to the 2% target, and sharp declines began in the markets after this statement. The Fed chairman also emphasized last year that they were ready to raise interest rates even further to meet the inflation target. After inflation reached 2.9% and weak employment data, Powell’s statements on Friday are thought to have a very different tone.

On the other hand, famous economist Mohamed El-Erian wrote that Jackson Hole was a golden opportunity for Powell. El-Erian stated in his column in Bloomberg that Powell’s speech could retake control of the Fed’s economic and political discourse. The economist suggested that Powell should openly discuss the economic and political situation and clearly state his policy goals and the paths to be followed to achieve them. El-Erian warned that if this clarity was not provided, there could be renewed volatility in the markets.

- Uzmancoin