Federal Reserve Chair Jerome Powell just gave Wall Street—and Main Street—a reason to celebrate.
- IWM ETF rallied after Powell’s remarks.
In a closely watched speech at the Fed’s annual Jackson Hole conference, Powell sent a clear signal that the central bank is preparing to shift its stance on interest rates as early as next month.
His message was dovish enough to spark a broad market rally and a wave of predictions from top economists: rate cuts are no longer a question of if and when, but how many.
“The baseline outlook and shifting balance of risks may warrant adjusting our policy stance,” Powell said.
In simple terms, the Fed is laying the groundwork for a September rate cut.
Markets React Instantly: Stocks And Crypto Rally
Stocks surged on Powell’s tone shift.
The Dow Jones jumped 2% to new all-time highs above 45,680, while the S&P 500 – as tracked by the Vanguard S&P 500 ETF (NYSE:VOO) – climbed 1.4% and the Russell 2000 soared nearly 4%, marking its best session since April.
Bond yields tumbled, with the 2-year Treasury falling 10 basis points to 3.70%, as traders moved to fully price in a 25-basis-point cut in September.
But the crypto market stole the spotlight, erupting into a full-blown risk-on frenzy as rate cut bets intensified. Bitcoin (CRYPTO: BTC) jumped 3.5%, while Ethereum …