As the economic heavyweights gather in Jackson Hole, Wyoming, for the annual Kansas City Fed’s Economic Symposium, the cryptocurrency market is already feeling the tremors. Cleveland Fed President Beth Hammack has made waves with her candid remarks that a rate cut is off the table for September. “We have inflation that’s too high and has been trending upwards over the past year,” she stated in a conversation with Yahoo News. Her words have sent bitcoin tumbling to a session low, dipping below $113,000—down nearly 10% from its record high just last week.
Hammack’s Hawkish Stance
Beth Hammack’s comments are not merely a personal opinion—they resonate with the broader strategy of Federal Reserve Chair Jerome Powell, who has been steadfast in his hawkish stance despite increasing pressure for a dovish pivot. Hammack further elaborated that the inflation numbers are only beginning to reflect the impact of tariffs, and the full effects are expected to materialize next year. “If the meeting was tomorrow, I would not see a case for reducing interest rates,” she added, putting to rest any immediate hopes for a policy shift.
Her remarks come in the wake of a flurry of media appearances by potential Powell successors, each advocating for lower interest rates. Among them, former St. Louis Fed chief Jim Bullard has been particularly vocal, calling for a 100 basis point reduction—a proposal that contrasts starkly with the current Fed stance.
Cryptocurrency Market in Flux
The impact of Hammack’s statements has been immediate and palpable. Just a week ago, bitcoin was riding high, hitting a record above $124,000 with nearly unanimous expectations of a September rate cut. However, those odds have now slipped to 71%, according to the CME FedWatch tool, and bitcoin has nosedived to $112,800. As explored in our recent coverage of Bitcoin Options Traders Split Ahead of Fed’s Jackson Hole Meeting, the market’s anticipation of the Fed’s actions has been a significant factor in recent volatility.
The cryptocurrency market, known for its volatility, is now navigating these choppy waters with caution. “The market is jittery,” says crypto analyst Lena Martinez. “Hammack’s comments have forced a recalibration of expectations, and traders are adjusting their positions accordingly.”
Yet, this isn’t just about bitcoin. The ripple effect is being felt across the broader crypto ecosystem. Altcoins like Ethereum and Solana have also seen declines, as investors brace for higher interest rates that could dampen speculative investments.
Historical Context and Forward Outlook
This isn’t the first time the Fed’s decisions have rocked the crypto world. Back in 2023, a similar scenario unfolded when the Fed’s hints at tightening monetary policy led to a sharp correction in digital assets. Fast forward to 2025, and we find ourselves in a familiar cycle—though the stakes and figures are significantly larger.
Looking ahead, all eyes are now on Fed Chair Jerome Powell, who is slated to deliver his keynote address on Friday. Market participants are bracing for a reiteration of the Fed’s commitment to curbing inflation. Powell is expected to emphasize the need for vigilance and a “wait and see” approach before making any changes to the monetary policy. For more insights on the market’s expectations, see All Eyes on Powell as Bitcoin Holds Below $113K: Crypto Daybook Americas.
Implications and Uncertainties
For now, the crypto market is in a state of suspended animation, caught between the allure of future gains and the immediate reality of monetary policy. “The market is in a holding pattern,” notes financial strategist Oliver Knight. “Investors are trying to read the tea leaves, but the Fed’s path forward appears to be set in stone, at least for the immediate future.”
The broader question remains: Can bitcoin and its counterparts withstand the pressure of a hawkish Fed, or will we see continued volatility? As the symposium unfolds and Powell takes the podium, the answers—or at least hints—will start to emerge.
In a market where the only certainty is uncertainty, crypto enthusiasts and investors alike will be watching closely, ready to adapt to whatever the economic landscape throws their way next.
Source
This article is based on: Fed’s Hammack Says ‘No’ to Rate Cut; Bitcoin Slips to Session Low Below $113K
Further Reading
Deepen your understanding with these related articles:
- Bitcoin Drops Below $114K, Ether Loses $4.2K as Jackson Hole Speech Might Bring Hawkish Surprise
- Bitcoin, Ethereum Fall as PPI Shock Squashes Hopes for Jumbo Rate Cut
- Volatility Vanishes Across Markets as Traders Brace for Powell’s Jackson Hole Speech
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
