Recently, Fed Chairman Powell's speech at the Jackson Hole conference has triggered a strong reaction in the financial markets. Powell's remarks suggest that the Fed's monetary policy may be on the verge of a significant shift.

Powell pointed out that the U.S. economic growth rate has slowed to 1.2%, and the job market is showing signs of weakness. Although the current inflation level is still relatively high, he believes this is a "one-time shock," and long-term inflation expectations remain stable around 2%. More notably, Powell candidly stated that the current interest rate level may be too high, and if the economic situation worsens further, the Fed will not rule out the possibility of cutting interest rates.

This statement immediately triggered a strong reaction in the market. Traders adjusted their expectations for the Fed's policy, with many beginning to bet that the Fed might start cutting interest rates as early as September, and anticipating at least two rate cuts before the end of the year. As a result, the three major U.S. stock indexes saw significant gains, and gold prices also climbed.

Powell's remarks have been widely interpreted as indicating that the Fed's monetary policy may soon experience a significant turning point. The market generally believes that the Fed may be preparing to end the current rate hike cycle and is starting to consider when to begin cutting rates to support economic growth.

However, analysts remind us that despite Powell's comments indicating a dovish tendency, the Fed's policy decisions will still depend on the performance of future economic data. Investors need to remain cautious when making decisions and closely monitor subsequent economic indicators and the speeches of Fed officials.