Bitcoin rises as Fed chair promises rate cuts in September

The price of Bitcoin, very much in line with that of the US stock market, has experienced a rally in the trading session on Friday.

This is due to the news that the US Federal Reserve plans to cut interest rates in September.

Jerome Powell in Jackson Hole

Federal Reserve Chairman Jerome Powell, speaking live at the Kansas City Fed’s annual economic conference in Jackson Hole, Wyoming, said the time has come to cut rates.

“The time has come for policy to adjust. 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.”

In addition, he reaffirmed that “inflation is on a sustainable path to 2%”.

In addition, he also said that they will change the focus to support the labor market, arguing that:

“…inflation and labor market data show an evolving situation. Upside risks to inflation have receded. And the downside risks to employment have increased.”

https://www.reuters.com/business/jackson-hole-live-fed-chair-jerome-powell-2024-08-23/

Bitcoin price rises on news of rate cuts

Perhaps somewhat expectedly, the price of Bitcoin has risen on the news.

Source: TradingView

As seen in the chart, BTC rose to an intraday high above $62,000 before returning to where it is currently trading at $61,770.

That said, the move could also be bolstered by the fact that Robert Kennedy, the leading independent candidate in the US presidential race, has ended his campaign in Arizona. Many speculate that he will support Donald Trump, strengthening his positions and chances against Kamala Harris. Trump has even announced a special guest for his own rally in Arizona.

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