New week has started in the cryptocurrency market. This week, there will be two important developments that may affect pricing in the market. The first of these is the Fed minutes to be published on Wednesday. More importantly, Fed chairman Jerome Powell will speak at the Jackson Hole symposium on Friday, bringing together central bank leaders from around the world.

“All attention will be on Jackson Hole”

Market actors expect to hear new things about monetary policy from Powell’s speech. Sharing his assessments on the subject, Morgan Stanley global chief economist Seth Carpenter said, “All market attention this week will be focused on the Jackson Hole meeting, with the theme of ‘Reassessing the Effectiveness and Transmission of Monetary Policy’ being apt. We expect Powell to deliver a lengthy discourse on the Fed’s medium-term strategy.”

The question to be answered at this year’s Jackson Hole will be how much the Fed will cut interest rates in September. It will be carefully monitored whether Powell will give a clue about this. In his speech in 2022, Powell emphasised that the necessary will be done to reduce inflation to the 2% target, and sharp declines in the markets began after this statement. The Fed chairman underlined last year that they were ready to further increase interest rates in order to achieve the target in inflation. It is thought that Powell’s statements on Friday will have a much different tone after inflation reached 2.9% and weak employment data.

On the other hand, famous economist Mohamed El-Erian wrote that Jackson Hole is a golden opportunity for Powell. In his column in Bloomberg, El-Erian stated that with Powell’s speech, the Fed could regain control of economic and political discourse. The economist suggested that Powell should openly discuss the economic and policy situation and clearly set out policy goals and the paths to be followed to achieve these goals. El-Erian warned that if this clarity is not provided, there may be fluctuations in the markets again.