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The news that has captured the attention of investors in the U.S. stock market in recent hours is the latest statement from Federal Reserve Chairman Jerome Powell. He has finally made the announcement that investors have been eagerly awaiting regarding an interest rate adjustment.
In an interview with the press at the Jackson Hole financial conference, Powell stated:
“It is time to initiate the process of reducing interest rates. The direction for adjustment has been clearly determined, but the specific timing and extent of the cuts will depend on actual data, upcoming forecasts, and considerations of risks.”
Financial analysts predict there is a 67.5% chance that the Fed will lower interest rates by 0.25% in the upcoming FOMC meeting on September 19, while the chance of a 0.5% cut is 32.5%.
The Fed’s current interest rate stands at 5.5%, the highest in 20 years, and has remained unchanged since July 2023. This was the Fed’s response to high inflation during the 2020-2021 period, when the U.S. had to inject substantial amounts of money to support businesses and individuals due to the COVID-19 pandemic.
In trading on August 23, major U.S. stock market indices recorded gains of 1% to 1.8%, reflecting investor optimism as the period of high interest rates comes to an end.
Thanks to the new information, many altcoins within the top 100 have seen significant increases, with many coins rising between 5% and 20% in the past 24 hours.
In the past 12 hours, the cryptocurrency market has witnessed total liquidations surpassing $150 million, with 79% attributed to short-selling transactions.
