With the government shutdown halting economic data, Fed Chair Jerome Powell’s speech tomorrow is now the only official market signal. Traders must watch closely, as every word will be scrutinized for hints on rate cuts. The Fed’s independence and lack of alternative data are leaving markets highly sensitive, with extreme volatility expected. Investors are urged to stay alert and avoid being caught flat-footed amid this rare data blackout.

Analysts warn that Donald Trump could gain control of U.S. monetary policy with just four of seven votes on the Fed’s Board of Governors, allowing him to influence leadership across all 12 district banks. In February 2026, all district presidents are up for reappointment, giving Trump potential power to reshape the FOMC. As @CryptoHayes notes, this could drive a “debasement trade” where looser policy and rate cuts fuel growth, lifting nominal assets and Bitcoin.

Fed Chair Jerome Powell is set to speak today at 8:30 AM EST, just ahead of the market open. Investors are watching closely, as his remarks could set the tone for the next potential rate cut expected later this month. Markets are bracing for heightened volatility, with traders seeking clues on the Fed’s policy direction amid ongoing economic uncertainty.

The crypto market is rebounding after a recent correction, with traders pricing in Fed rate cuts amid signs of cooling inflation. Bitcoin and Ethereum ETFs recorded $3.19 billion in inflows this week, reflecting renewed investor confidence.

$BTC: $122,124 (+0.56%)

$ETH: $4,436 (−0.27%)

Meanwhile, the Fear & Greed Index sits at 70 (Greed), the total market cap stands at $4.43 trillion, and liquidations reached $361 million.

Bitcoin slipped below key support levels as the US dollar strengthened ahead of Fed Chair Jerome Powell’s speech. The broader crypto market retreated after a week of robust ETF inflows, with traders closely watching Powell’s remarks for guidance on future monetary policy amid data gaps caused by the government shutdown. Market participants remain cautious, balancing optimism from inflows with short-term volatility risks.

Rate-cut bets now reflect a 90% probability of a 25 bps decrease at the October 29 FOMC meeting, according to Polymarket. Despite recent data delays and reporting gaps, these bets indicate strong market confidence in the Fed’s easing path amid ongoing fiscal uncertainty. Investors continue to price in a supportive monetary policy stance, signaling faith in continued rate cuts to bolster the economy.

All eyes are on Fed Chair Jerome Powell, speaking at 8:30 AM EST ahead of market open. His remarks could have a major impact on markets, as investors watch for signals regarding the next rate cut expected later this month. Traders should prepare for heightened volatility across equities, bonds, and cryptocurrencies in response to any policy guidance.

The Federal Reserve’s September 16–17, 2025, FOMC minutes showed that real GDP growth slowed and the labor market softened in H1, while core PCE inflation stayed elevated. Most officials viewed modest policy easing as appropriate, signaling further rate cuts this year. Participants also highlighted persistent upside inflation risks alongside growing downside risks to employment, reflecting a cautious balance between supporting growth and controlling inflation.

Federal Reserve Chair Jerome Powell will deliver a key speech today at 8:30 AM ET. Traders should brace for high market volatility, as his comments on monetary policy, interest rates, or economic outlook could significantly impact equities, bonds, and cryptocurrencies. Market participants are closely watching for any signals on future rate adjustments or policy shifts.