Jerome Powell

Interest rates could end up “higher than anticipated,” the central bank chief said on Capitol Hill, Tuesday

The Nasdaq Composite and S&P 500 indexes rose as much as 1.4% and 1.1%, respectively, during Powell’s interview

The central bank raised interest rates by 25 basis points — that’s not surprising — but all eyes are on the subtext

If Powell and the committee signal a forthcoming pause in interest rate hikes, markets will react favorably, but a hawkish stance will likely send shares plummeting again

The hike marks the Fed’s seventh consecutive rate increase, a strategy it hopes will curb the highest inflation the country has seen in more than four decades

The S&P 500 and Nasdaq Composite indexes both gained about 1% and 1.5% in the moments following Powell’s speech

The Fed’s forward guidance statement did not provide clarity about what December might bring

Investors seem confident that the central bank will continue its rate hikes this week with a 75 basis point increase announced Wednesday, followed by 50 basis points in December

The regulator is particularly concerned about stablecoins, volatility and crypto token classification

Powell was guarded when asked about what might come in November — markets are still betting on a 75 bps increase at the next FOMC meeting

The S&P 500 and Nasdaq were trading 2.3% and 2.8% lower, respectively, at time of publication, while bitcoin and ether similarly lost 4% and 7%, respectively

Following Powell’s speech, markets predict chance of a 75 basis point September rate hike is slightly lower compared to earlier in the week

Both crypto and equities markets have taken a breather as investors wait cautiously for central bankers to gather at Jackson Hole.

Futures markets are now pricing in a 53% chance of a 50 basis point hike and a 48% chance of a 75 basis point hike in September

The Fed has kept an eye on labor statistics in recent months with the hopes of gauging the odds of a recession

Overall economic activity appears to have slowed a bit, Fed officials wrote in their statement released Wednesday, but employment remains high

The economy added 372,000 jobs in June, but the unemployment rate was 3.6% — unchanged from May

Central bankers lowered their growth forecasts for the second half of 2022 and 2023, despite a rebound in GDP during the second quarter of 2022

Central bankers predict elevated unemployment rates, prolonged higher prices and a slowdown in economic activity going forward

The Federal Reserve’s plan is aimed at tightening credit and cooling down inflation, but what’s the collateral damage?

The Fed is raising interest rates and shrinking its balance sheet to combat the highest inflation in four decades

Bitcoin and equities rallied late in the session, suggesting rate hikes may be mostly priced in and may not push markets down in the future

Increased concerns with rising inflation, ongoing supply chain pressures and the war in Ukraine are leading to greater financial hardships for Americans, the Fed said

Investors are likely expecting a non-aggressive approach to interest rates following Wednesday’s change, leading to a jump in markets

The ongoing conflict in Ukraine could impede progress on the bills