Powell hints at a possible rate cut in September, with market expectations rising to 85.2%.

On August 23, Fed Chairman Powell stated that the continuously "changing" economic risks have given the Fed more ample reasons to lower interest rates. This statement indicates that Powell has aligned himself with the "dovish" camp within the Federal Open Market Committee responsible for setting interest rates, and it also signals that he may support a 25 basis point rate cut at the Fed's next meeting in September.

According to data platform observations, the probability of the Fed lowering interest rates by 25 basis points in September has risen to 85.2% (the likelihood before Powell's speech was about 75%), while the probability of maintaining the interest rate unchanged is 14.8%.