As is known, the FED resumed the interest rate cuts it had paused in 2025 in September and decided to cut them by 25 basis points.
While the Fed is expected to cut interest rates one or two more times by the end of 2025, Fed Chair Jerome Powell will deliver a highly anticipated speech on “Economic Outlook and Monetary Policy” at the National Association of Business Economics in Philadelphia.
This speech will be the first major speech since the last Fed policy meeting in September.
At this point, global and crypto markets are eagerly awaiting Fed Chair Powell's statement. Investors, in particular, will be listening intently to Powell's speech.
Because the government is still closed in the USA, the FED Chairman's statements are of great importance.
What Time Will Fed Chair Jerome Powell Speak?
FED Chairman Jerome Powell is expected to make a statement today at around 19:20 Turkish time.
Powell had previously said in his speech that the central bank must carefully balance the risks of high inflation and a weakening labor market in future interest rate decisions.
Describing the FED's situation as challenging, Powell stated that inflation risks remain high and employment risks are becoming increasingly visible.
At this point, markets are now focusing on whether Powell will signal monetary easing or maintain his cautious stance amid economic uncertainty.
As Powell's remarks were awaited, Philadelphia Fed President Anna Paulson said yesterday that rising employment risks made a stronger case for further interest rate cuts in the U.S. According to Paulson, the tariffs are unlikely to raise inflation as much as once feared.
Now we have the October interest rate decision ahead of us and it is wondered how the US government shutdown will affect the Fed's decision.
Markets are pricing in a 97.8% chance of another 25 basis point cut at the October meeting, according to the CME FedWatch Tool.
JP Morgan economists, on the other hand, said they expect the Fed to make two more interest rate cuts in 2025 and one in 2026.
How Are Bitcoin and Cryptocurrencies Affected?
The crypto market has been falling in the last 24 hours ahead of Powell's speech. Bitcoin fell 3.7% to $110,000 and Ethereum fell 5.2% to $3,930.
While altcoins in general are experiencing significant declines, experts predict that Powell’s clear signal of monetary policy easing could trigger a general crypto rally led by BTC and ETH.
On the other hand, experts say that if Powell emphasizes inflation risks or denies the possibility of a rate cut in the near term, BTC could fall below $110,000 and a decline could occur.
*This is not investment advice.