Recently, comments from Fed Chairman Powell have sparked widespread follow in the market. From his statements, it is clear that he holds a cautious attitude towards the current economic situation. Powell recognizes that government trade policies have had a noticeable impact on consumer prices, but he believes that this impact may only be temporary and is unlikely to sustain a rise in inflation rates.

In terms of the labor market, Powell pointed out that the current employment market does not show a particularly tight state and is facing increasing downside risks. This situation lowers the possibility of sustained inflation rise. Based on these economic conditions, interest rate cuts are seen as an effective strategy to stimulate economic growth and stabilize the employment market.

Powell's dovish stance will have far-reaching effects on the U.S. economy and global financial markets.

For the U.S. economy, expectations of interest rate cuts will encourage corporate investment and consumer spending. The reduction in financing costs for businesses will make it easier for them to obtain funds for expanding production capacity and increasing innovation efforts, thereby driving economic growth. For example, manufacturing companies can take advantage of lower interest rate loans to purchase new equipment, expand capacity, and promote industry development. At the same time, the decline in interest rates on mortgages and auto loans for residents will also stimulate consumption, driving the prosperity of industries such as real estate and automobiles.

In addition, lowering interest rates helps to stabilize the job market. Companies expanding production and increasing investment will create more job opportunities, alleviating the downward pressure currently faced by the job market and making the economy operate more robustly.

In the global financial markets, Powell's dovish stance will also trigger a chain reaction. The US stock market may usher in a new bull market. Lowering interest rates means that corporate profit margins will expand, investors' expectations for future corporate earnings will increase, and a large amount of funds may flow into the stock market, driving up stock prices.

However, we should also note that excessive interest rate cuts may bring about some potential risks, such as the formation of asset bubbles and the accumulation of long-term inflation pressure. Therefore, the Fed needs to maintain a balance when implementing monetary policy, stimulating economic growth while preventing potential risks.