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Fed Chair Powell Signals September Rate Cut, Warns on Inflation Risks
Federal Reserve Chair Jerome Powell’s Jackson Hole speech provided clarity for traders on U.S. monetary policy, confirming a likely September rate cut while warning about inflation risks. His remarks lifted both stock markets and crypto assets, even as he ruled out a long series of cuts.
A Likely Cut, But With Caution
Powell told the audience that U.S. monetary policy is already “in restrictive territory.”
- Risks around jobs and inflation are shifting.
- He acknowledged that “downside risks to employment are increasing” but stressed the labor market remains strong and the economy has shown resilience.
- For this reason, the Fed is not ready to commit to multiple cuts after September.
Tariffs Put Pressure on Prices
A central concern for Powell is the inflationary impact of tariffs.
- “The effects of tariffs on consumer prices are now clearly visible,” he said.
- The Fed expects these effects to accumulate over the coming months with high uncertainty.
- Powell cautioned that while some price pressures may be temporary, the risk of stagflation—high inflation combined with weaker growth—is real and something the Fed intends to avoid.
Fed Updates Its Playbook
Powell also announced a significant shift in the Fed’s operating framework.
- The central bank has dropped its 2020 “makeup strategy,” which allowed inflation to overshoot the 2% target.
- It has returned to a flexible inflation-targeting approach designed to keep long-term expectations anchored.
- “Our revised statement emphasizes our commitment to act forcefully to ensure that longer-term inflation expectations remain well-anchored,” Powell said.
This adjustment reflects changes in the U.S. economy over the past five years, including higher inflation pressures and major shifts in trade, tax, and immigration policy.
Market and Crypto Reaction
Markets reacted positively to Powell’s remarks.
- The Dow Jones surged more than 600 points, closing at a record high of 45,548.
- U.S.-listed crypto stocks climbed, as lower interest rate expectations tend to improve liquidity and risk appetite.
For digital assets, Powell’s cautious signal is key: while lower rates support crypto markets, the Fed’s guarded stance on inflation means the path ahead remains uncertain.
@ Newshounds News™
Source: Coinpedia
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Fed Governor Waller: Embrace Blockchain and Payment Innovations
Federal Reserve Governor Christopher Waller called on the central bank to embrace new technologies—including blockchain, stablecoins, and digital assets—arguing they are essential for the future of payments and U.S. dollar strength.
A Technology-Driven Revolution in Payments
Speaking at the Wyoming Blockchain Symposium 2025, Waller said the U.S. payments system is undergoing a “technology-driven revolution” fueled by advances in computing power, data processing, and distributed networks.
While some remain skeptical of these changes, Waller stressed that the history of payments has always been defined by technological progress.
Stablecoins and the U.S. Dollar’s Global Role
Waller highlighted stablecoins as a particularly important innovation.
- They can support the international role of the U.S. dollar, ensuring it remains the anchor currency in global finance.
- Stablecoins also have the potential to improve both retail and cross-border payments, making transactions faster and more efficient.
“The technologies available today might be new, but leveraging innovative technology to build new payment services is not a new story,” Waller noted.
Fed and Private Sector Collaboration
According to Waller, the reliability of the U.S. payments system has historically come from partnerships between the Federal Reserve and private industry.
- The Fed should continue to embrace innovation to modernize its services.
- Stronger engagement with fintech innovators and the digital asset ecosystem will help ensure the U.S. financial system remains competitive and resilient.
“It is important for the Federal Reserve to continue to embrace technological advancements to modernize its services and continue to support private sector innovation… particularly as there is increased convergence between the traditional financial sector and the digital asset ecosystem.”
@ Newshounds News™
Source: The Daily Hodl
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Ripple vs SEC Lawsuit Officially Ends After Appeals Dismissed
The nearly five-year legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has officially come to a close, as the Second Circuit Court dismissed both parties’ appeals.
Court Confirms Dismissal
According to a one-page filing shared by defense lawyer James K. Filan, the Second Circuit approved the joint stipulation by Ripple and the SEC to withdraw their appeals.
The order, signed by Clerk Catherine O’Hagan Wolfe, was marked simply as “So Ordered”—effectively bringing one of the most high-profile cases in crypto history to an end.
Background on the Appeals
- In October 2024, the SEC appealed Judge Analisa Torres’ ruling that Ripple’s programmatic XRP sales and certain distributions were not investment contracts.
- Ripple, in turn, cross-appealed the part of the case it lost, challenging the decision that institutional sales of XRP violated securities laws.
Judge Torres imposed a $125 million fine and a permanent injunction restricting Ripple from institutional XRP sales without SEC registration.
When a new pro-crypto administration took office in January, both Ripple and the SEC agreed to settle by reducing penalties and removing restrictions. However, Judge Torres denied the proposed revisions, leaving both parties to formally withdraw their appeals.
What the Final Judgment Means
- The lower court rulings remain intact, including Judge Torres’ finding that XRP itself is not a security.
- Ripple must pay the $125 million fine, already held in escrow, to the SEC.
- Future institutional XRP sales must be registered with the SEC to comply with securities laws.
Ripple and XRP Moving Forward
For investors, this closure removes one of the largest uncertainties hanging over XRP since the SEC’s lawsuit began in December 2020.
With the case resolved, XRP has rallied alongside the broader crypto market:
- Price: $3.03 (up 5.82% in the past 24 hours)
- Market Cap: $180.29 billion
This development secures Ripple’s legal position in the U.S. while allowing the company to focus on its global payments and stablecoin expansion strategy.
@ Newshounds News™
Source: The Crypto Basic
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