FX.co ★ Jerome Powell delivers speech at Cato Institute's 40th Annual Monetary Conference

Hawkish comments about the US monetary policy provided by Fed Chair Jerome Powell are exerting pressure on the market. Speaking at Cato Institute's 40th Annual Monetary Conference, Jerome Powell said that the Federal Reserve would continue raising the benchmark rate until it capped inflation.

These comments only proved Jerome Powell's view on the situation presented at the Jackson Hole economic symposium. He warned that the interest rates would be increased and would stay high until inflation hit the target level.

During the conference in Cato, he pinpointed that judging by history, it would be better to avoid premature policy easing.

Jerome Powell's speech contributed to the expectations of the 75-basis-point rate hike at the end of the month. According to CME FedWatch Tool, the likelihood of an aggressive approach totals 86% compared to 77% recorded on Wednesday.

Although the interest rate hike, aimed at lower inflation, is slowing down the economy, the Fed still hopes that it will be able to reach the goal of "maximum employment and stable prices."

Powell also commented on the growing crypto market. He once again voiced his attitude, saying that digital currencies were speculative and could hardly be called a means of saving. The growing market should be regulated.

"Something that claims to be money should be regulated," he said.