Global Markets Plummet After Fed Chair Signals Rate Hike Remains on Table
A sharp sell-off rippled through global financial markets on August 29 after Federal Reserve Chair Kevin Warsh delivered an unexpectedly hawkish assessment of inflation at the Jackson Hole economic symposium.
Warsh stated that inflation remains a concern and that the central bank's 2% target is still out of reach. He noted that 54% of the components making up personal consumption expenditures inflation had risen more than 3% over the past 12 months, underscoring the persistence of price pressures.
The remarks sparked an immediate and synchronized decline across asset classes. Bitcoin fell from above $79,000 to near $76,800 during the session, while the S&P 500 slipped from roughly 7,770 to 7,710. Gold dropped from around $4,620 per ounce to below $4,470.
The sell-off interrupted a period of notable institutional accumulation in XRP-linked products. US spot XRP ETFs attracted $77.47 million across six consecutive positive sessions through August 25, and total assets in those funds now stand at approximately $1.5 billion.