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Fed Chair Jerome Powell Faces Delicate Balancing Act in Jackson Hole Speech Today
When Federal Reserve Chair Jerome Powell takes the stage today at the annual Jackson Hole, Wyoming economic forum, he will face mounting pressures—from President Trump’s repeated calls for his resignation to a recent stream of worrying economic data.
Powell, whose term as Fed Chair ends in May 2026, will likely deliver his last major policy speech as head of the central bank. The event, hosted by the Federal Reserve Bank of Kansas City, is closely watched because it provides a stage for Fed officials to signal views on the economy and future monetary policy direction.
Focus on Rates at Jackson Hole
- A key issue is whether Powell will hint at the Fed’s next interest rate decision, scheduled for Sept. 17.
- President Trump has pushed the Fed to cut rates, citing solid economic data and muted inflation.
- Powell, however, has emphasized a “wait and see” approach, especially as the Fed evaluates the impact of tariffs on consumer prices.
- Meanwhile, new signals—such as slowing job growth and inflation showing its largest increase in three years—complicate the picture.
Melissa Brown, Managing Director of Investment Decision Research at SimCorp, summed it up:
“You have this political pressure balanced off against the economic pressure, which makes Powell’s job particularly difficult.”
The Fed declined to comment ahead of Powell’s remarks. The Kansas City Fed will livestream the speech Friday at 10 a.m. Eastern Time on YouTube.
Will the Fed Cut Rates?
- Powell is expected to avoid confirming whether the Federal Open Market Committee (FOMC) will lower rates in September.
- By design, Fed decisions are kept private until officially announced to avoid market disruption and to maintain independence from political pressure.
- Before the Sept. 16–17 meeting, the Fed will receive two key reports:
- Labor Department jobs report (Sept. 5)
- Consumer Price Index (CPI) (Sept. 11)
Recent political tension has risen after the head of the Labor Statistics Bureau was fired in August, following a sharp slowdown in reported job creation—figures that President Trump openly questioned.
Mike Sanders, Head of Fixed Income at Madison Investments, explained:
“I don’t think Powell can push the narrative toward cutting because that leaves him no option but to cut. He has to signal data-dependence.”
Markets, however, are already betting on a cut. FactSet data shows an 88% chance of a 0.25% rate reduction in September.
Last year at Jackson Hole, Powell hinted at cuts, which materialized the following month with a 0.50% rate reduction.
Dual Mandate, Conflicting Signals
- Powell also faces the Fed’s dual mandate:
- Maximize employment
- Maintain stable prices (inflation control)
- These mandates often conflict:
- Cutting rates may boost job growth but risk higher inflation.
- Holding rates steady may stabilize inflation but slow employment growth.
Economist Will Denyer (Gavekal Research) noted the Fed may face a stagflation risk—a combination of slow growth and rising inflation, considered the “Fed’s nightmare scenario.”
Minutes from the July 30 FOMC meeting reveal that some members still worry supply-chain disruptions could keep inflation elevated, confirming that inflation remains a central concern.
Oxford Economics Chief U.S. Economist Ryan Sweet added:
“The labor market will be the swing factor on whether the Fed cuts interest rates in September or not.”
@ Newshounds News™
Source: CBS News
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US House Adds CBDC Ban to Massive Defense Policy Bill
The House has quietly slipped a provision banning the Federal Reserve from issuing a digital currency into an almost 1,300-page defense policy bill, underscoring how the debate over money’s future has become tied to national security legislation.
The move comes through a revision of HR 3838, the House’s version of the National Defense Authorization Act (NDAA), shared Thursday by the House Rules Committee. The language is sweeping: it bans the Federal Reserve from studying, developing, or creating any digital currency.
The House had already passed a separate CBDC-ban bill in July — the Anti-CBDC Surveillance State Act — by a razor-thin margin of 219–210. But that measure faced a steep uphill battle in the Senate. By inserting the ban into the NDAA, lawmakers have effectively hitched it to must-pass national security funding, increasing its odds of survival.
Why It Matters
The NDAA is among the most critical annual bills in Congress, setting defense budgets and military priorities. It is also notorious as a vehicle for non-defense riders that would otherwise stall if brought as standalone measures. By embedding a CBDC prohibition here, House Republicans have dramatically shifted the battleground.
- House leaders promised the CBDC ban in July as part of a deal with conservative hardliners.
- A group of GOP holdouts had refused to advance three crypto-related bills unless a ban was guaranteed, stalling floor debate for over nine hours — the longest delay in House history.
- The logjam broke only after House Majority Leader Steve Scalise pledged that the ban would be added to the NDAA.
What the Provision Does
The language would:
- Ban the Federal Reserve from issuing a CBDC or any digital asset.
- Block the central bank from offering financial products or services directly to individuals.
- Prohibit the Fed from even “testing, studying, developing, creating, or implementing” a digital currency.
- Allow a carve-out for stablecoins, clarifying that the bill does not prohibit “any dollar-denominated currency that is open, permissionless, and private.”
Historical Context
- Republicans have long targeted CBDCs as a threat to financial privacy and state overreach.
- In early 2023, Representative Tom Emmer introduced the CBDC Anti-Surveillance State Act, but it died in the previous Congress.
- Emmer has since reintroduced the bill, framing it as aligned with President Donald Trump’s January executive order prohibiting CBDCs.
With its new place in the NDAA, however, the CBDC ban is no longer a fringe fight — it is now tethered to America’s broader defense and security posture.
@ Newshounds News™
Source: Cointelegraph
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CFTC Launches Crypto Sprint With Public Consultation Open Until October 20, 2025
The Commodity Futures Trading Commission (CFTC) has opened its latest “crypto sprint,” a major step in advancing President Trump’s digital asset agenda. This initiative, running through October 20, 2025, invites public feedback from industry leaders, investors, and everyday users to help shape the next phase of U.S. crypto market rules.
Working in tandem with the SEC, the sprint underscores a push for stronger federal oversight of spot trading, signaling that digital assets have become a priority at the highest levels of government.
Focus on Spot Market Oversight
Acting Chairman Caroline D. Pham announced that the sprint will begin immediately, with a focus on:
- Federal-level trading rules to strengthen spot market oversight.
- Expanded attention to leveraged, margined, and retail trading risks.
- Alignment with the SEC’s “Project Crypto”, in direct response to Trump’s call for U.S. leadership in digital assets.
Calling this the start of a “Golden Age of innovation,” Pham urged the industry to embrace both growth and responsible regulation as central to U.S. competitiveness in global digital finance.
Expanding Oversight Beyond Spot Trading
This is the second CFTC crypto sprint in recent weeks:
- The first focused specifically on spot trading.
- The new phase expands to broader market structure, leverage, and retail-focused products.
Pham emphasized the Commission’s commitment to managing risks without stifling innovation, highlighting coordination with the SEC, the White House, and market stakeholders.
Public Consultation Open Until October 20
Public participation is central to this process. The CFTC is inviting feedback from institutions, builders, and individual investors via its official website. This marks a rare chance for the crypto community to directly shape future U.S. digital asset rules.
Implications for the Market
- Bullish case: Clear rules could legitimize the market, attract institutional money, and accelerate mainstream adoption.
- Bearish case: Overly strict limits on leverage and retail access — combined with regulatory overlap — could suppress innovation and push projects overseas.
Either way, the CFTC’s sprint represents a pivotal moment: the rules that emerge could define the U.S. crypto market for years to come.
@ Newshounds News™
Source: Coinpedia
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Ripple Partners with SBI to Roll Out RLUSD Stablecoin in Japan by Q1 2026
Ripple announced Friday that it will launch its Ripple USD (RLUSD) stablecoin in Japan in partnership with SBI Holdings by the first quarter of 2026. The rollout will be managed through SBI VC Trade, the crypto subsidiary of SBI Holdings.
As of Friday morning, RLUSD holds a market capitalization of $666 million with a 24-hour trading volume of $71 million, according to CoinGecko.
Ripple and SBI’s Strategic Collaboration
Ripple emphasized that Japan is a critical market for the expansion of stablecoin adoption. In the announcement, Tomohiko Kondo, CEO of SBI VC Trade, said:
“SBI Group has been leading the development of the cryptocurrency and blockchain field in Japan. The introduction of RLUSD will not just expand the option of stablecoins in the Japanese market, but is a major step forward in the reliability and convenience of stablecoins in the Japanese market.”
This partnership builds on SBI’s longstanding relationship with Ripple, reinforcing their joint strategy to drive digital asset infrastructure in Asia.
RLUSD: Backed and Growing
- Launched in December 2024.
- Backed 1:1 by reserves that include:
- U.S. dollar deposits
- Short-term U.S. government bonds
- Other cash equivalents
The stablecoin market overall has seen sharp growth, with the supply of USD-pegged stablecoins hitting $266 billion as of Thursday, up from $256 billion on August 1, according to The Block’s data dashboard.
Expanding Global Reach
Ripple has been positioning RLUSD as a global payments rail:
- In June 2025, the Dubai Financial Services Authority approved RLUSD for use within the Dubai International Financial Centre, broadening its international footprint.
- The upcoming Japan launch marks another step in Ripple’s ambition to position RLUSD as a reliable, institution-friendly stablecoin in both regional and global markets.
Conclusion
Ripple’s Japan expansion with SBI Holdings demonstrates how stablecoins are moving beyond U.S. markets into regulated, high-demand regions. With Japan’s openness to blockchain innovation and SBI’s leadership role in fintech adoption, the partnership could become a model for stablecoin integration across Asia.
@ Newshounds News™
Source: The Block
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