Powell's Speech Preview Tonight: A Performance of 'Balancing Act'

Tonight's speech by Powell is likely to be a 'tightrope' balancing act:

- The core tone will revolve around 'data dependence', anchoring inflation control targets while considering economic growth risks, without leaning in one direction;

- It will neither release a clear signal of 'September rate cuts', avoiding a 'dovish' frenzy in the market;

- Nor will it completely overturn rate cut expectations with a strong stance, preventing a 'hawkish' position from causing excessive panic.

The fundamental purpose is to retain the maximum policy adjustment space and decision-making flexibility for the Federal Reserve before the September monetary policy meeting.

For investors, two preparations are necessary:

1. Be vigilant about potential market volatility after the speech and prepare risk hedging in advance;

2. Focus on capturing subtle expressions regarding economic outlook assessments and policy framework adjustments during the speech, as these may be key clues to the direction of future policies.

It is worth noting that after tonight's speech, market focus will quickly shift to the August employment and inflation data—these two sets of data are the true 'core weights' determining the direction of the Federal Reserve's policy in September. #杰克逊霍尔会议