Powell's latest remarks have triggered market fluctuations, and calls for a shift in Federal Reserve policy are growing louder. The market currently widely expects the Federal Reserve to cut the Intrerest Rate by 25 basis points in September, with the probability soaring to 91.1%, a significant increase from the previous 74.8%, almost becoming a foregone conclusion.

There are two main driving factors behind the expectation of interest rate cuts: First, the U.S. labor market is under pressure, and a rate cut may help alleviate employment difficulties; second, the inflation concerns that were previously triggered by tariff increases have subsided, greatly reducing the risk of soaring prices caused by a rate cut.

Market expectations for the future Intrerest Rate trend are also constantly adjusting. The possibility of continuing to cut interest rates in October is approaching 50%, and even the probability of three rate cuts (25 basis points each) in 2025 has reached 37%.

This potential shift in monetary policy may have implications across multiple areas:

1. The stock market may rise due to improved liquidity.
2. The bond market may face downward pressure on the Intrerest Rate.
3. The US dollar may face short-term depreciation risks.

Overall, the Federal Reserve seems to be preparing for "quantitative easing to save the economy." A rate cut in September has almost become a foregone conclusion, but the subsequent policy direction will still depend on the performance of employment and inflation data. If economic indicators continue to deteriorate, the possibility of the Federal Reserve adopting a more aggressive rate-cutting strategy cannot be ruled out.

In this uncertain economic environment, investors and the general public need to closely monitor policy trends and timely adjust their personal finances and investment strategies to cope with possible economic changes.