After Powell's speech, the market expects the probability of a September rate cut to rise to 90%.

According to Jinshi Data, Federal Reserve Chairman Powell stated that the price effects of tariffs are short-lived and represent a reasonable baseline scenario, and that the stable unemployment rate allows the Fed to be more cautious in adjusting its policy stance. He emphasized that a one-off price increase cannot be allowed to escalate into a persistent inflationary problem, and introduced a new framework to accommodate a variety of economic conditions. Powell also noted downside risks to the employment situation. Following Powell's remarks, traders' expectations for a September Fed rate cut rose from 75% to approximately 90%.