TLDR

Federal Reserve Chair Jerome Powell will deliver remarks on Friday at the Jackson Hole symposium that could signal interest rate direction
Major retailers including Walmart, Home Depot, Target, and Lowe’s report earnings amid tariff pressures
Crypto markets pulled back from all-time highs with Bitcoin trading at $115,000, down 6.9% from its peak
Meeting between US President Trump and Ukrainian President Zelensky could impact investor confidence across markets
PMI reports on Thursday will provide insights into economic conditions ahead of expected September rate cut

The coming week presents several key events that could significantly move both traditional and cryptocurrency markets, with Federal Reserve commentary, major retail earnings, and geopolitical developments taking center stage.

Federal Reserve Chair Jerome Powell is scheduled to deliver closely watched remarks on Friday during the annual Jackson Hole Economic Policy Symposium. Market participants will be looking for signals about the central bank’s approach to interest rates at its September meeting.

The Fed faces a challenging situation with inflation ticking higher while recent job market data suggests weakness. “Can’t imagine the pressure on Fed Chair Powell ahead of the Jackson Hole gathering,” BMO Senior Economist Jennifer Lee wrote in a recent blog post.

Investors widely expect the central bank to cut interest rates in September, with futures markets indicating an 84.6% probability of a reduction to the 4.0-4.25% range. This would be the first rate cut since December of last year.

Retail Earnings Under the Microscope

Several major retailers are set to report earnings this week, including Walmart, Home Depot, Target, and Lowe’s. These reports will provide insights into consumer spending patterns and the impact of tariffs on prices.

Walmart’s Thursday report comes after the retailer indicated it would consider price increases to offset tariff costs. Home Depot, reporting Tuesday, has previously stated it was trying to maintain its pricing structure despite similar pressures.

Target’s expected Wednesday report follows warnings in the prior quarter that sales may be lower than originally projected. T.J. Maxx parent company TJX and discount retailer Ross Stores are also scheduled to release earnings.

These reports will help gauge both consumer sentiment and the inflationary impact of the Trump administration’s tariff policies. Many retailers have indicated that import taxes are affecting their pricing strategies and potentially their revenue figures.

Crypto Markets Face Volatility

Cryptocurrency markets have experienced a pullback in recent days, with total market capitalization dropping to around $4 trillion, nearly 6% below last week’s all-time high. This decline may deepen or reverse based on key events this week.

Bitcoin was trading at $115,000 on Monday morning, down 2.5% over 24 hours and 6.9% below its recent peak. Ethereum also dipped to $4,345, its lowest point in a week and still 10% away from its 2021 all-time high.

Other cryptocurrencies showed mixed performance, with XRP, Solana, Hyperliquid, and Sui declining while Chainlink and Monero moved against the trend with positive gains.

Monday’s meeting between US President Trump and Ukrainian President Volodymyr Zelensky could impact investor sentiment across all asset classes. Trump stated hours before the meeting that Zelensky “can end the war with Russia almost immediately if he wants to.”

BREAKING: President Trump issues a statement just hours before he is set to meet with Zelensky saying that Zelensky “can end the war with Russia almost immediately if he wants to.”

Trump says there is “no getting back Crimea and no going into NATO by Ukraine.” pic.twitter.com/jxTOZpOq32

— The Kobeissi Letter (@KobeissiLetter) August 18, 2025

A potential resolution to the Russia-Ukraine conflict would likely boost confidence in financial markets, including cryptocurrencies. The outcome of this meeting could therefore have ripple effects throughout the week.

Thursday brings the release of August S&P Global Manufacturing PMI and Services PMI indices, which serve as leading economic indicators. These reports provide timely insights into changing economic conditions and may influence market sentiment.

Also on Thursday, existing home sales data will be released, though real estate reports typically have minimal impact on cryptocurrency and other risk-on asset markets.

The minutes from the Federal Reserve’s July meeting will be published, offering additional context on the central bank’s view of interest rates and economic conditions. This could provide insight into why two committee members voted for a rate cut last month while the majority held rates steady.

All these events set the stage for Powell’s Friday speech, which market watchers expect will have an immediate impact. A dovish tone could boost cryptocurrencies and other risk assets, while a hawkish stance emphasizing inflation concerns might trigger sharp corrections.

According to Yardeni Research, “Odds are that he will be more of an owl, waiting and watching, than either a hawk or a dove. In other words, he’ll say that a Fed rate cut is possible at the September meeting, but the Fed’s decisions are data-dependent.”

The major U.S. stock indexes recorded gains last week, with the Dow Jones Industrial Average reaching an intraday record on Friday. This positive momentum provides context for market activity heading into the new week.

Weekly jobless claims data will also be released, adding another piece to the economic puzzle that Powell and the Federal Reserve must consider as they weigh potential interest rate cuts against persistent inflation concerns.

The post What To Expect in Markets This Week: Crypto, Fed, and Retail Earnings appeared first on Blockonomi.

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Filed under: Bitcoin - @ August 18, 2025 11:28 am