US Federal Reserve Chairman Jerome Powell Raises Stock and Cryptocurrency Prices

Federal Reserve Chairman Jerome Powell sparked an upward rally in stocks and Bitcoin, which rose from $112,000 to an intraday high of $116,790.

Powell said the Fed would not pursue a tight policy and remained prepared to adjust it as conditions changed. He called the current stance «constrained,» suggesting that risks of a decline in employment were growing, which could prompt the Fed to ease monetary policy.

While acknowledging that inflation remains slightly above target, Powell called the tariff-induced price increases temporary, giving market participants optimism.

BTC/USD Hourly Chart for August 22, 2025

His remarks were softer than previous ones. Job creation has slowed and the unemployment rate has risen to 4,2%, prompting Powell to say the Fed cannot ignore the signals and maintain too tight a policy.

Stock Markets on August 22, 2025 after Jerome Powell’s Speech.

Markets reacted quickly, with stocks rising on expectations of future rate cuts and Bitcoin added almost $3000 to the cost.

Powell’s emphasis on caution, flexibility and balance reinforced the dovish bias that investors interpreted as a green light for risk assets.

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