Recently, Fed Chairman Powell's public speech has attracted widespread attention from the financial markets. His remarks are interpreted as an assessment of the current economic situation and guidance on the future direction of monetary policy, leaving the market full of expectations for the Fed's upcoming actions.

Powell emphasized that global economic risks are rising, which is seen as a signal that the Fed may take measures to cut interest rates. The market expects a 25 basis point cut in September. This policy inclination is considered an acknowledgment that the downward pressure on the economy exceeds concerns about inflation. Powell described the impact of trade frictions on prices as a "temporary shock," which may mean that short-term inflation data will not be a major factor hindering easing policies.

Particularly worth following is that Powell mentioned "the labor market is not particularly tight," which is interpreted as paving the way for interest rate cuts. Since the job market is not overheating and inflationary pressures are also temporary, the obstacles to cutting rates seem to have diminished. At the same time, his statement that "employment faces downside risks" has also caught the market's attention, as employment data has always been one of the important considerations in the Fed's decision-making. This proactive warning may reflect concerns within the Fed about the economic outlook.

Market analysts are comparing the current situation to that of 2019. At that time, after the Fed signaled a dovish stance, there were three consecutive rate cuts within three months, causing the price of Bitcoin to surge from $4,000 to $14,000. However, the current economic environment is more complex, with the scale of negative-yielding bonds exceeding $17 trillion, and capital is seeking new investment outlets.

The September meeting of the Fed's Open Market Committee (FOMC) could mark the starting point of a new round of liquidity release. The market is eagerly discussing whether this rate cut cycle will replicate the historical scenario of "rate cuts leading to explosive growth." Participants in the cryptocurrency market are particularly focused on this trend, as it may have a significant impact on digital asset prices.

Overall, Powell's remarks provided important clues for the market, but the specific direction of monetary policy still needs further observation. The Fed's decisions will continue to be influenced by various factors such as the global economic situation, inflation data, and the job market.