On August 22, Fed Chairman Powell will deliver an important speech in the picturesque Jackson Hole, Wyoming. This seemingly tranquil resort has now become the focus of the global financial markets. Every word from Powell will resonate with the nerves of the global Capital Market, as he faces unprecedented challenges and pressures.

Economic data presents a complex situation: the impact of tariff policies is beginning to show, consumer spending in American households is on the rise, and inflationary pressures are gradually increasing. However, signs of a cooling job market have emerged, and hiring difficulties have increased. This subtle change in the economic landscape has led the market to heighten expectations for a possible 25 basis point rate cut next month.

Meanwhile, Powell is also facing immense pressure from the White House. The President has publicly called for a more aggressive interest rate cut policy to stimulate the economy and has even directly criticized Powell's leadership abilities. More concerning is that the White House seems to have begun preparing for the successor to the Fed Chair in February 2026, which undoubtedly adds significant pressure on Powell.

At this critical moment, Powell needs to find a balance among various interests: he must respond to market concerns about the slowing economic growth, maintain the independence of the Fed, and also consider inflation risks and changes in the labor market. This speech not only concerns the direction of U.S. economic policy but may also determine Powell's own career prospects.

As global economic uncertainty increases, every decision made by Powell will be closely monitored. How he formulates monetary policy during this challenging period will have a profound impact on global financial markets. The Jackson Hole meeting undoubtedly marks an important turning point in Powell's career, and its outcomes will influence the future direction of the U.S. economy and even the global economy.