As Federal Reserve Chairman Powell is about to deliver a speech at the Jackson Hole annual meeting, financial markets are fully focused on looking for clues regarding policy direction. The recently released US PMI data was unexpectedly strong, significantly exceeding market expectations, which not only propelled a notable appreciation of the dollar but also prompted investors to reassess future Intrerest Rate trends.

Analysts at Deutsche Bank have pointed out that these impressive economic data are changing the market's expectations regarding the timing and magnitude of interest rate cuts. Many traders have lowered their expectations for the Fed to ease policies in the near future, and market sentiment has become more cautious and tense. Currently, market participants are eagerly awaiting Powell's speech, hoping to gain key information on policy direction from it.

The investment community is particularly focused on how Powell will balance the recent slightly weak employment data with the persistently high inflation pressures. Will he respond more to changes in the labor market, or will he continue to emphasize the stubbornness of inflation and the robust growth of the economy? How Powell weighs the idleness of the labor market against inflation pressures will be a decisive factor influencing the future trend of the market.

At this critical moment, the market seems to be holding its breath, waiting for every word and signal from Powell. Whether it is a subtle change in wording or clear policy guidance, it could stir up huge waves in the financial markets. Investors are closely monitoring this speech, hoping to capture key clues about the future direction of the Federal Reserve's policies to guide their investment decisions.