Fed’s Powell at Jackson Hole: Prepared to Raise Rates Further if Appropriate

Market participants were looking to Friday morning’s speech to gauge the future direction of the U.S. central bank’s monetary policy.

Federal Reserve Chair Jay Powell delivered remarks Friday morning (Drew Angerer/Getty Images)

Restrictive monetary policy will continue to be needed until inflation is sustainably slowing, said U.S. Federal Reserve Chairman Jerome Powell in his keynote speech at the Kansas City Fed’s Jackson Hole Symposium.

The central bank, said Powell, is ready to raise rates further if appropriate, though will proceed carefully.

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The price of bitcoin (BTC) initially slipped a few dollars on the hawkish lean to Powell’s remarks, but has since bounced to modestly positive on the day at $26,200. The move is perhaps not surprising given the bearish tilt to bitcoin’s price action in the days leading up to the Jackson Hole event.

According to the CME FedWatch tool, market participants are forecasting about a 20% chance of another Fed rate hike at the central bank’s September meeting, roughly the same as prior to the Powell speech.

A check of traditional markets shows U.S. stock indices posting modest gains of about 0.5% as Powell speaks. The 10-year Treasury yield is little-changed near a 16-year high of 4.22%.

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