Markets Brace as Powell Steers Fed Through Inflation Crossfire

* Powell’s Jackson Hole speech to set Fed’s rate course. * Bitcoin hits $124,000 while Ethereum sets ETF inflow records. Federal Reserve Chair Jerome Powell will deliver a speech at Jackson Hole on August 17. This address could define the path of U.S. monetary policy as markets face surging inflation and geopolitical volatility. Rising inflation and bond yields have amplified pressure on the Fed, and investors are eagerly seeking clarity on the likelihood of interest rate cuts amid uncertain global conditions. Economic and geopolitical forces are heavily weighing on market sentiment, with mounting tensions highlighted by Ukrainian President Volodymyr Zelensky’s upcoming meeting with U.S. President Donald Trump in Washington. This meeting follows Trump’s recent summit with Russian President Vladimir Putin in Alaska, which ended without a resolution, deepening geopolitical uncertainty that could indirectly shape market behavior. Key U.S. economic data will also likely sway investor outlooks this week, as the Federal Reserve will release the minutes from its July meeting on Wednesday, followed by preliminary purchasing managers’ index (PMI) figures for August on Thursday. These data points will offer insights into the impact of recent tariff adjustments on domestic and global economies. Meanwhile, investors remain focused on Powell’s address at Jackson Hole for signals on potential monetary policy adjustments to tackle inflationary pressures. Cryptocurrencies have experienced notable developments leading up to Powell’s speech. Bitcoin briefly surged past a record $124,000 before retreating to a range near $118,000, while institutional investors continue to pour into cryptocurrency markets. Bitcoin ETFs recorded inflows exceeding $793 million over consecutive weeks in August. In a significant milestone, Ethereum outpaced Bitcoin by attracting $2.85 billion in ETF inflows during the second week of August alone. These figures underscore growing institutional confidence, even as retail sentiment shows mixed signals. As of August 17, 2025, at 16:08 UTC, Bitcoin (BTC) is trading at $118,342.17, with its 24-hour volume changing by 0.458%. In the same period, Ethereum (ETH) is priced at $4,558.40, and its trading volume has changed by 3.355%. With Powell’s speech and new economic data on the horizon, markets hang in the balance as investors await crucial signals to guide investment strategies amid ongoing geopolitical and economic turbulence.