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BlockBeats report, August 29: After Federal Reserve Chair Wouhs delivered remarks on suppressing inflation pressures, market bets on Fed rate hikes surged significantly. The U.S. dollar strengthened accordingly, and prices of gold and other precious metals came under heavy pressure and fell sharply. As of the time of publication, spot gold was down 2.6% for the day, with a drop exceeding $120, trading at $4,480 per ounce. Earlier in the session, it briefly touched a one-week low of $4,464.
Independent analyst Tai Wong pointed out: “Chairman Wouhs clearly stated that inflation has not seen any material slowdown, and emphasized that the U.S. Federal Reserve still has ‘work to do.’ This remark triggered a sharp sell-off in the gold market. Although this may still be a communications strategy of ‘loud thunder, little rain,’ it was enough to leave the market in a stalemate in which the odds of a rate hike versus a pause at the September meeting are about evenly split.” Wouhs’ remarks are his most public acknowledgment so far that additional rate hikes may be needed to ease price pressures. In his speech, he noted that if policymakers cannot be certain that core inflation is steadily returning to the 2% target, the Fed “still has work to do.”

Original text compiled: Caixin
At 10:00 p.m. Beijing time on Friday, Federal Reserve Chair Kevin Vaush made an appearance at the Jackson Hole annual meeting and delivered a speech titled (The Times We Are In) (In Our Time).
Overall, in this Jackson Hole speech, Vaush sent a fairly clear cautious-but-hawkish signal. He believes that the U.S. economy and labor market still show resilience, and that the current financial environment is hard to characterize as obviously restrictive. Meanwhile, inflation remains significantly above the Fed’s 2% target, so price pressures should continue to be the top focus of monetary policy.

BlockBeats news, August 28, according to Politico. Four people familiar with the matter said that U.S. House Speaker John Johnson plans to meet with Republican super donor Elon Musk on Friday in Texas. The meeting comes as Johnson campaigns for Republican candidates across Texas ahead of the midterm elections. This is also the latest sign that Republican leaders want Musk to make large contributions to help the GOP maintain control of Congress.
An insider says that Elon Musk’s schedule is uncertain and the meeting could be adjusted at the last minute. According to reports, the tech billionaire is considering using his super PAC, “American Political Action Committee” (Americapac), to donate at least $100 million to the Republican Party for this year’s midterm elections, but where the money ultimately will go is still unclear.

BlockBeats message: On August 28, Federal Reserve Chair Kevin Wosch delivered his first Jackson Hole speech, stating that it is necessary to be certain that underlying inflation is moving toward the target; otherwise, there is still work to be done. It is difficult to describe financial conditions as restrictive. Inflation data has not shown a trend of significant improvement; the Fed’s primary focus should be on prices. The role of forward guidance should be limited. The likelihood that the economy will achieve much higher growth is increasing. Market participants should focus on the real information in the economy. Do not formulate forward-looking policies based on outdated or inaccurate data.