Powell's Speech Ignites the Market! September Rate Cut Probability Soars to 90%, Inflation and Employment Signals Hold Secrets

Global financial markets were set ablaze last night by the "Voice of the Federal Reserve"! Federal Reserve Chairman Powell's latest speech dropped a bombshell, not only addressing key issues of inflation and employment but also directly driving the expectations for a September rate cut to make a "great leap" — according to PANews, traders' predictions of the probability of a September rate cut have surged from 75% to about 90%, and market sentiment has instantly boiled over!

In his speech, Powell released multiple key signals: he clearly stated that the tariff price effects are "temporary and reasonable," and that the stable unemployment rate provides the Federal Reserve with "cautious space" for policy adjustments; at the same time, he firmly declared that "we will not tolerate a one-time price increase evolving into persistent inflation," and simultaneously introduced a new monetary policy framework to respond to complex economic conditions.

It is noteworthy that Powell also pointed out hidden concerns — the current employment situation faces downward risks, a statement that both supports the case for a rate cut and adds another layer of consideration for the market regarding economic prospects.

As the probability of a September rate cut approaches 90%, global assets react rapidly: US stocks surge in the short term, US Treasury yields fluctuate, and the cryptocurrency market, previously driven by easing expectations, sees assets like Ethereum reaching historic highs. Going forward, key indicators like non-farm payroll data will become the core to validate the logic of a rate cut, and every data point could trigger a new wave of market turbulence, with investors holding their breath and closely watching the Federal Reserve's next move!