Recently, Federal Reserve Chairman Jerome Powell exhibited a clear shift in policy stance during the press conference of the Federal Open Market Committee (FOMC). This change suggests that the macroeconomic landscape may undergo significant adjustments in the coming months.

Powell's speech highlighted that the condition of the job market has a greater impact on the economy than inflation risks. He noted that signs of instability are beginning to appear in the labor market, which could affect the overall health of the economy.

It is noteworthy that the Federal Reserve seems to be gradually downplaying the inflation target framework that it previously adhered to strictly. Powell hinted that current inflation expectations may have deviated from the original path, prompting decision-makers to reassess and adjust the policy direction.

What is even more noteworthy is that Powell hinted at the possibility of starting to implement interest rate cuts in September. This signal indicates that the Federal Reserve is preparing for a soft landing of the economy to address potential economic downturn risks.

Overall, Powell's speech this time showcased a significant shift in the Federal Reserve's policy, reflecting a cautious attitude towards the current economic situation. This change will undoubtedly have a profound impact on the financial markets, and investors and policymakers need to closely monitor the subsequent developments.