Market expectations for the Federal Reserve to cut interest rates in September have dropped from over 90% a week ago to around 73%-74% now.

Powell's Dilemma

Powell's speech faces dual challenges:

Anti-inflation: The current inflation rate is still above the Federal Reserve's 2% target, and indicators like the PPI (Producer Price Index) show that inflation remains 'sticky.' The tariff policy of the Trump administration may also drive up inflation.

Protecting Employment: Recent non-farm employment growth has fallen far below expectations, with significant downward revisions to the data for May and June, indicating underlying concerns about weakness in the labor market.

Therefore, Powell's statements need to seek a balance between controlling inflation and nurturing the economy and employment $BTC #杰克逊霍尔会议