The post 8 Reasons Why the Fed Might Not Want to Cut Rates in September appeared on BitcoinEthereumNews.com.
Cryptocurrencies and related stocks extended losses Tuesday as traders braced for the release of the Fed’s FOMC minutes on Wednesday and Fed Chair Jerome Powell’s Jackson Hole speech on Friday. Bitcoin dropped 3.2% in the past 24 hours to slip below $114,000, while ether fell 5.3% to under $4,200. XRP tumbled 6.2%, Cardano’s ADA slid 8% and the broader crypto market was down 3.2%. Shares of crypto-related companies, such as bitcoin miners, crypto exchanges and digital asset treasury firms, suffered even bigger losses, with MARA, COIN and MSTR closing today’s regular session down 5.7%, 5.8% and 7.4%, respectively. By contrast, in general, U.S. equities suffered less: the Dow ended flat, the S&P 500 fell 0.59%, and the Nasdaq slid about 1.5%. The disparity underscores how digital assets, which rely heavily on cheap liquidity, are more exposed to shifts in rate expectations than traditional stocks. Investors now face a pivotal macro catalyst-heavy week. On Aug. 20 at 2 p.m. ET, the Fed will release minutes from the FOMC meeting held July 29–30, offering insight into policymakers’ tariff and inflation debates. From Aug. 21–23, central bankers gather for the Jackson Hole symposium, with Powell’s keynote set for Aug. 22 at 10 a.m. ET. Together, the minutes and Powell’s speech could define market expectations for the September policy meeting. Here are some top macro highlights traders will likely watch this week to gauge how the Fed will react during next month’s meeting. Tariffs’ delayed bite Many companies have absorbed tariff costs to protect market share, but analysts warn they cannot do so indefinitely. Once passed on to consumers, these costs could drive prices higher and force the Fed to wait before cutting. Sticky inflation data Despite some cooling, inflation gauges remain elevated. The producer price index, a key wholesale measure, has been hotter…

