This week, Federal Reserve Chairman Jerome Powell is expected to indicate that he is open to 50 basis point rate cuts. According to Evercore ISI analysts, Powell will emphasize in his speech at the Jackson Hole Economic Symposium that the Fed will follow a flexible rate cut strategy. However, Powell is not expected to commit to a specific cut rate. It is stated that the size of the cuts will depend on data, particularly from the labor market.
This situation could have a positive impact on investment vehicles such as bonds, stocks, gold, and Bitcoin. As interest rates drop, the value of stocks and bonds could increase, while demand for alternative investments like gold and Bitcoin might also rise. Depending on the course of economic data, this cut could begin in September.
