Powell's dovish stance ignites the market, full expectations for interest rate cuts!

On August 23, traders on Wall Street jumped into the stock and bond markets early this month, betting that the Federal Reserve would restart interest rate cuts, just waiting for Fed Chairman Powell to give a boost to the upward trend. On Friday, Powell indeed made a dovish remark, and as soon as his speech came out, the cross-market saw the largest increase since April.

Powell's tone this time is quite similar to last year's Jackson Hole meeting—both hinting that the Federal Reserve is shifting its policy direction. This time he was more direct, opening the door for a rate cut in September, clearly stating that there is a high probability of a 25 basis point cut at the September meeting.

Once this signal was released, the market immediately reacted: bets on a September rate cut in interest rate futures surged, many types in the stock and bond markets rose, the US dollar index fell, and the yields on two-year and ten-year US Treasuries also decreased. However, Powell also mentioned that monetary policy does not have a fixed path and will depend on the data.

Next week requires close attention:

Tuesday at 03:15 Dallas Fed President Logan and at 07:15 New York Fed President Williams will speak.

Thursday at 00:45 Richmond Fed President Barkin will give a speech.

At 20:30, there will be the US second quarter GDP revision.

Friday is even more critical, at 20:30 there will be the core PCE and personal spending data for July, and at 21:45, the Chicago PMI will be released.

At 06:00, Fed Governor Waller will talk about monetary policy.

At 22:00, there will also be the final value of the University of Michigan Consumer Sentiment Index and inflation expectations.

These data and speeches will determine whether the expectations for a rate cut in September become more stable. #杰克逊霍尔会议 $SOL