Fed Chairman Powell sent a dovish signal in his speech on August 23, which triggered a strong reaction in the market. Wall Street traders entered the market early, anticipating the Fed to resume its rate-cutting policy. Powell's remarks indeed did not disappoint the market, subsequently causing the largest rise across markets since April.

Powell's tone in this speech is similar to that of last year's Jackson Hole meeting, suggesting that the Fed may adjust its policy direction. He more directly opened the possibility of a rate cut in September, indicating that a 25 basis point cut is likely at the September meeting.

The market reacted quickly to this signal: bets on a rate cut in September increased significantly in the interest rate futures market, multiple varieties in the stock and bond markets saw a rise, the dollar index fell, and the yields on two-year and ten-year U.S. Treasuries also decreased accordingly. However, Powell also emphasized that monetary policy is not set in stone and still needs to be adjusted based on economic data.

In the upcoming week, the market will closely watch a series of important events and economic data:

- August 29: The presidents of the Dallas and New York Fed will deliver speeches.
- August 31: Richmond Fed President will give a speech, and the revised value of US second quarter GDP will be announced.
- September 1: Core PCE for July, personal spending data, and Chicago PMI will be released. Fed officials will speak on monetary policy, and the final value of the University of Michigan Consumer Sentiment Index and inflation expectations will also be announced.

The upcoming economic data and official speeches will have a significant impact on the stability of the interest rate cut expectations in September. Market participants will closely monitor this information to assess the future direction of the Fed's monetary policy.