According to CoinDesk: "U.S. Federal Reserve Chairman Jerome Powell stated that restrictive monetary policy will be necessary until inflation slows down sustainably. He made these remarks during his keynote speech at the Kansas City Fed's Jackson Hole Symposium. Powell mentioned that the central bank is prepared to raise rates further if needed, but will proceed with caution.
Bitcoin's price initially dropped slightly after Powell's hawkish comments but has since recovered and is now modestly positive at $26,200. This reaction was expected due to the bearish trend in bitcoin's price leading up to the Jackson Hole event, as traders anticipated Powell's continued focus on bringing inflation back to the central bank's 2% target.
Market participants, as per the CME FedWatch tool, are predicting a 20% chance of another Fed rate hike at the central bank's September meeting, which is roughly the same as before Powell's speech. Traditional markets show U.S. stock indices with modest gains of around 0.5%. The 10-year Treasury yield remains nearly unchanged near a 16-year high of 4.22%. The U.S. dollar index and the price of gold also remain relatively stable on the session."
