According to Mars Finance, on August 24, The Kobeissi Letter released the latest market analysis stating that Federal Reserve Chairman Powell has effectively yielded, and the Federal Reserve will lower interest rates in a month, attributing this to a 'weak labor market.' Meanwhile, the PPI inflation rate has reached the highest level in three years, and the CPI inflation rate has been above 2% for 53 consecutive months. To better understand what is happening, it is essential to first understand the Federal Reserve's responsibilities: the purpose of the Federal Reserve is to reduce unemployment and avoid inflation/deflation, which is the 'dual mandate' of the Federal Reserve. Since 2021, the Federal Reserve has been highly focused on inflation. However, Chairman Powell's speech on Friday marked a significant shift: 'Changes in risk balance may require us to adjust our policy stance.' In other words, the Federal Reserve now believes that the risk of unemployment is greater than that of inflation, which almost confirms that interest rate cuts are imminent.

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