Two Possible Outcomes for Bitcoin After Powell’s Jackson Hole Speech [Video]

Bitcoin logged a modest recovery on Wednesday as traders grappled with the outcome of Jerome Powell’s keynote address at the virtual Jackson Hole Symposium tomorrow.

The Federal Reserve chairman expects to give markets a clue on his office’s approach to US inflation. In retrospect, Mr. Powell’s administration started reviewing its monetary policy frameworks in 2019, a part of which discusses its strategy on coping with inflation.

Economists expect the Fed to make significant changes for their 2 percent inflation target. The central bank had announced the limit back in 2012, but it so far missed hitting it.

But the dynamics shifted wildly during 2020 as the global economy went into a crisis mode because of the COVID-19 pandemic. With businesses locked down, markets crashed, and a record rise in the number of unemployment claims, the Fed had to intervene with trillions of dollars worth of liquidity via its unlimited bond-buying program.

The bank also …