FameEX Morning Crypto News Recap | August 22, 2025

Fed Minutes Reveal Trade War's Impact on Market, Reduces Likelihood of September Rate Cut

The Federal Reserve's July meeting minutes underline the significant uncertainty caused by the trade war, alongside growing concerns about an economic slowdown due to downward revisions in non-farm data. These factors have led to a decline in market expectations for a rate cut in September, with the probability of a 25 basis point cut now at 68%, and a 50 basis point cut at just 2%, according to Polymarket data.

U.S. Economy Expands at 2.5% Annualized Pace, August PMI Data Shows

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, emphasized that August’s preliminary PMI underscores strong U.S. business momentum in the third quarter. The data indicates an annualized growth rate of 2.5%, nearly double the 1.3% pace recorded in the first half of 2025. Rising tariff-related costs are being transferred to consumers, driving inflationary pressures to their highest in three years. The increase in goods and services prices means consumer inflation will likely surpass the Federal Reserve’s 2% target. Alongside renewed business activity and hiring, these inflationary pressures suggest the economy is entering what Williamson described as the “rate hike zone”.

Inflation Still Exceeds Fed’s 2% Target, Says Bostic

On August 21, Fed’s Bostic stated inflation remains well above the 2% target, emphasizing the central bank’s policy remains centered on reducing inflation back to that benchmark.

Federal Reserve’s Jackson Hole Event: Could Powell Pre-Announce a Rate Cut Plan?

The Federal Reserve’s annual Jackson Hole conference, scheduled for Friday at 10 a.m. Eastern Time, is a critical gathering for global central banks. This year carries added significance as Fed Chair Jerome Powell is set to attend for the final time, drawing intense market focus. Investors are watching closely to see if Powell signals a September rate cut plan in advance or if hawkish voices within the Fed push back against such expectations. The meeting’s outcome will likely influence monetary policy direction, requiring investors to stay alert and prepared.

Stablecoin Market May Hit Multi-Trillion Dollar Scale, Goldman Sachs Predicts

On August 21, Fortune reported that Goldman Sachs released research noting the stablecoin market is beginning a new expansion cycle, with potential to reach several trillion dollars. U.S. Treasury Secretary Scott Bessenet echoed optimism, highlighting stablecoins’ strong growth potential and promising long-term outlook.

CFTC Moves to Regulate Cryptocurrencies Under Presidential Working Group Recommendations

On August 22, acting CFTC Chair Caroline D. Pham unveiled a new cryptocurrency regulatory sprint to implement the Presidential Working Group’s recommendations. She highlighted that establishing instant digital asset trading at the federal level is a central priority for the Trump administration’s regulatory agenda.

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