Ripple news continues to make headlines as recent remarks from the Federal Reserve triggered movement across the crypto market, sending XRP and Bitcoin higher. Federal Reserve Chair Jerome Powell surprised markets last Friday by signaling that an interest rate cut could be on the horizon in September.

Fed Signals Policy Shift at Jackson Hole

At the Kansas City Federal Reserve’s Economic Symposium held annually in Jackson Hole, Jerome Powell delivered remarks that shifted investor expectations. Contrary to predictions of a more cautious or hawkish tone, Powell pointed to growing economic vulnerabilities—particularly in the U.S. labor market.

“We see rising downside risks to employment,” Powell stated, adding that these risks could materialize rapidly, leading to higher unemployment and layoffs. This pivot in language sparked speculation that the central bank may reduce interest rates as early as September.

Crypto Markets React: XRP, Bitcoin Head Higher

Following Powell’s statement, Bitcoin advanced by around 2%, trading at $114,200. While XRP wasn’t explicitly mentioned in Powell’s comments, it typically follows larger market trends. The positive momentum brought renewed trader confidence, nudging XRP higher in sync with Bitcoin and other major cryptocurrencies.

Traditional assets also responded to Powell’s dovish shift. U.S. stock markets rose over 1%, the 10-year Treasury yield slipped six basis points to 4.27%, the U.S. dollar weakened by 0.5%, and gold increased by 0.6% — all pointing to investor optimism about looser monetary policy.

Fed Chair Jerome Powell at the Jackson Hole Symposium signals a potential policy shift towards a rate cut.

XRP Faces Pressure Before the Announcement

Leading up to Powell’s speech, risk-sensitive markets—including XRP and Bitcoin—had been under pressure. A week before the address, Bitcoin surged to a new peak above $124,000, driven by rising expectations for a September rate cut. But as those expectations cooled, the largest cryptocurrency dipped nearly 10% to $112,000.

The XRP market mirrored this decline to some extent. Investor sentiment on altcoins like XRP and Ethereum had fluctuated as odds of a monetary easing fell to around 69% just before Powell’s remarks. However, in the immediate aftermath of his comments, those odds rebounded to nearly 90%, according to CME FedWatch data.

Ethereum and Traditional Markets Also React

Ethereum (ETH), often seen as a more speculative digital asset similar to XRP, experienced an even steeper correction than Bitcoin. It lost roughly 12% of its value after coming tantalizingly close to its all-time high. Since Powell’s speech, it has rebounded approximately 8%, highlighting crypto’s volatility in times of macroeconomic uncertainty.

Meanwhile, equity markets like the Nasdaq had also taken a hit in the lead-up to the symposium, dropping about 3%. This decline was largely because investors were adjusting expectations amid reduced confidence in a rate cut—until Powell’s surprising pivot reignited optimism.

Ripple’s Outlook in a Changing Policy Landscape

With central banks potentially shifting toward more accommodative policies, Ripple and its XRP token stand to benefit. XRP is often viewed as a bridge currency in cross-border payments and a utility token in the crypto space. Looser financial conditions typically favor assets like XRP as investors seek growth opportunities in alternative markets.

Related: XRP, Bitcoin Could React to Inflation Data

Ripple’s alignment with evolving fiscal policies, especially in the wake of Jerome Powell’s latest stance, could enhance the project’s market traction heading into the final months of 2025.