Crypto News Today: Fed’s Hammack Rules Out Rate Cut as Bitcoin Falls Below $113K

Key TakeawaysCleveland Fed President Beth Hammack said current data does not justify a September rate cut.Her remarks signal support for Fed Chair Jerome Powell’s hawkish stance ahead of Jackson Hole.Bitcoin fell nearly 10% in a week, slipping to a session low near $112,800.Rate cut odds for September dropped to 71%, down from near certainty just a week ago.Hammack Pushes Back Against September Rate CutCleveland Federal Reserve President Beth Hammack said Wednesday that the current economic data “do not make the case” for cutting rates in September, reinforcing Fed Chair Jerome Powell’s hawkish position.“We have inflation that’s too high and has been trending upwards over the past year,” Hammack told Yahoo News in Wyoming. “If the meeting was tomorrow, I would not see a case for reducing interest rates.”She added that the impact of tariffs on inflation is only starting to be reflected in data and that the full effect will be seen in 2026.Hawkish Consensus Builds Ahead of Jackson HoleHammack’s comments come as Powell faces pressure from President Donald Trump and some former Fed officials to ease policy. Earlier this week, former St. Louis Fed President Jim Bullard called for rates to be cut by 100 basis points.Despite these dovish calls, Hammack’s remarks show Powell retains broad support inside the Fed. Two dissident votes for cuts at the last FOMC meeting appear to be outweighed by hawkish consensus.Markets now expect Powell to reaffirm his wait-and-see stance during his keynote speech at the Jackson Hole Economic Symposium on Friday.Bitcoin Drops as Rate Cut Odds RecedeCrypto markets reacted swiftly. Bitcoin (BTC) fell to $112,800, nearly 10% below last week’s record high above $124,000. According to CME FedWatch, the probability of a September rate cut dropped from nearly 100% to 71% in just seven days.Other risk assets also weakened as traders recalibrated expectations. Hammack’s remarks add to the growing view that the Fed will hold rates higher for longer until inflation shows clearer signs of easing.With Hammack’s hawkish comments and Powell’s speech looming, markets are bracing for more volatility. For Bitcoin, which has closely tracked monetary policy expectations, the next move may depend on whether Powell leaves the door open—or firmly shuts it—on rate cuts in 2025.