Recent remarks by Fed Chairman Powell have sparked widespread follow in the market. He pointed out that the evolving economic risks provide a more compelling reason for the Fed to cut interest rates. This statement seems to suggest that Powell has inclined towards a 'dovish' stance within the Federal Open Market Committee, implying that he may support a 25 basis point rate cut at the next meeting in September.

Although Powell acknowledged that the impact of government trade policies on consumer prices has become evident, he believes that this impact may be temporary and will not last long. He stated that considering the current labor market is not particularly tight and faces increasing downside risks, the likelihood of sustained inflation is low.

Powell further elaborated on the complex situation facing the current economy, pointing out that inflation has upward risks while employment is under downward pressure, presenting significant challenges for decision-making. This cautious and balanced statement reflects the multiple considerations the Fed faces in formulating monetary policy.

The current economic situation is indeed complex. On one hand, trade tensions may have a negative impact on economic growth; on the other hand, domestic consumption in the United States remains strong, and the job market is generally stable. In this context, the Fed needs to carefully weigh various factors to ensure the long-term stable growth of the economy.

Powell's latest statement will undoubtedly influence the expectations of financial markets. Investors and analysts will closely follow the economic data and comments from Fed officials in the coming weeks to seek more clues about the future direction of monetary policy. In any case, the Fed's decisions will have a profound impact on the global economy, and all parties will be eagerly awaiting the results of the Fed meeting in September.