The Chair of the Federal Reserve, Powell, is set to deliver a speech on August 22, 2025, at 10 PM (Beijing time) during the annual Central Bank meeting held in Jackson Hole, Wyoming, focusing on the economic outlook and the assessment of the Fed's policy framework. This speech has attracted widespread follow, primarily because investors hope to gain information regarding a possible interest rate cut in September.

Recently, there have been some signs of weakness in the U.S. labor market, which once sparked strong expectations for interest rate cuts. However, recent comments from several Fed officials have leaned towards a hawkish stance, reducing the likelihood of a rate cut in September. In this context, Powell's speech will become an important reference for the market to assess the future direction of monetary policy.

It is worth noting that this may be Powell's last time attending the Jackson Hole meeting as the chairman of the Fed. Therefore, his biggest challenge lies in how to clearly communicate the direction of future monetary policy, balancing the need for policy flexibility while providing the market with sufficient guidance.

Given the complexity of the current economic situation, Powell's speech is likely to balance factors of inflationary pressure and economic growth. Market participants will closely follow his views on the job market, inflation trends, and global economic uncertainty to assess potential actions the Fed may take in the future.

Regardless of the specific content of Powell's speech, it will have a significant impact on financial markets, potentially causing fluctuations in the stock market, bond market, and foreign exchange market. Investors and economists will carefully analyze every word in search of clues about the Fed's policy direction.