Recently, Federal Reserve Chairman Powell delivered an important speech at the Jackson Hole annual meeting, drawing widespread attention from the market. This speech covered several key areas and provided important guidance for the market.

First, regarding interest rate policy, Powell hinted that the Federal Reserve might consider a rate cut in September. He emphasized that the policy stance may need to be adjusted based on changes in the economic outlook and risk assessment. This statement has injected new expectations into the market.

In terms of the job market, Powell pointed out that although the labor market is still close to full employment levels, the risks of employment downturn are rising. He specifically mentioned that the significant slowdown on both the supply and demand sides of the labor force is an unusual phenomenon that warrants close attention.

Regarding the inflation outlook, Powell believes that the inflation risks are tilted to the upside in the short term. However, he emphasizes that long-term inflation expectations remain stable and is committed to not allowing temporary price increases to evolve into a persistent inflation problem.

Regarding the impact of tariffs, Powell acknowledged that the effects of tariffs on consumer prices have already emerged and expected this impact to continue to accumulate over the next few months. However, he also pointed out that the effects of tariffs may be relatively short-lived, representing a one-time change in price levels.

It is worth noting that the Federal Reserve also announced an adjustment to its policy framework. The new framework removes some previous statements, including the pursuit of "inflation averaging 2% over the long term" and the content that established employment decisions based on the assessment of "the gap from maximum employment levels." This change reflects the Federal Reserve's adaptation to changes in the economic environment.

Powell's speech had an immediate impact on financial markets. Traders increased their bets on a Federal Reserve interest rate cut, gold prices rose, the dollar index fell, and non-U.S. currencies such as the yen and Australian dollar appreciated against the U.S. dollar by more than 1%. Meanwhile, U.S. Treasury yields declined, the three major U.S. stock indices rose, and the cryptocurrency market also reacted positively, with Bitcoin prices breaking through $116,000.

This speech not only demonstrates the Federal Reserve's assessment of the current economic situation but also provides important policy guidance for market participants. As the global economic environment continues to change, the direction of the Federal Reserve's policies will remain a focal point for the market.