Federal Reserve Chairman Powell's latest statements have paved the way for interest rate cuts. He indicated that the downward risks facing the economy are "changing" and increasing, giving the Federal Reserve more justification to lower interest rates.

This statement marks Powell's clear alignment with the "dovish" side within the Federal Reserve (supporting rate cuts to stimulate the economy). The market interprets this as a strong indication that he is likely to support a 25 basis point rate cut at the next meeting in September.

Regarding the trade war, which is a concern for many, Powell acknowledged that its impact on raising prices is now "clearly visible." However, he believes this impact is likely to be a one-time shock that will not persist, allowing the Federal Reserve to choose to overlook its short-term fluctuations.

He explained that the current labor market is not overheating, while the risks of economic downturn are increasing. In this situation, the likelihood of sustained inflation soaring is very low. The challenge he now faces is a complex situation: on one hand, he must guard against the risk of inflation potentially rising, and on the other hand, he must be wary of the downward risks posed by a weak labor market.#杰克逊霍尔会议