Powell's speech at Jackson Hole hinted at a possible interest rate cut in September, causing the market to rejoice, with gold and stocks soaring. What he actually wanted to express was to wait for data before making decisions, not to get too excited. However, his comments still led to excessive optimism in the stock market, and Powell felt a bit helpless, as he had previously stated that interest rates should remain high to avoid risks from being too loose.

Tonight, Powell delivered his final speech as Chairman of the Federal Reserve in Jackson Hole.
First, the opening line was 'The basic outlook and the changing risk balance may require us to adjust our policy stance'—sending a signal of a rate cut in September—similar to last year's meeting, where his first sentence was 'the time to adjust policy has come.'
This is no different from a 'loud bang' for the financial markets—no one had expected him to 'decisively signal a rate cut,' and in the stark contrast, the market reacted violently. Gold surged more than $30 instantly, the dollar index dropped 0.5% upon hearing the news, and the three major U.S. stock indices all rose more than 1%. Traders once again fully priced in two rate cuts by the Fed before the end of the year.