Recently, a series of speeches by Federal Reserve Chair Jerome Powell have sparked considerable discussion in the financial markets. His stance is very clear: inflation has not yet fully returned to the target level, which means policy must remain vigilant.

In simple terms, Powell's message is that although inflation indicators have recently improved, core inflation remains above the Fed's 2% target. This is not a minor issue. He emphasizes that price stability is the cornerstone of sustainable economic growth, and the Federal Reserve will flexibly adjust interest rates based on actual economic data rather than locking in a specific policy path in advance. This is actually beneficial for the market—at least policymakers won't be bound by rigid expectations.

Regarding the labor market, Powell's signals are positive. Unemployment remains low, and labor force participation is improving, indicating that the economic foundation is still relatively solid. However, he also mentioned a concern: there is a structural mismatch between job growth and productivity. Once labor costs rise, it could put new pressure on inflation. This is a point worth paying attention to.

As for the market's widespread expectation of rate cuts, Powell explicitly stated that they will proceed with caution. In the context of inflation still being above the target and the labor market remaining tight, the Fed will not rush to act. He repeatedly emphasized that policy decisions must be based on comprehensive data support, not follow market sentiment.

Overall, Powell's statements reflect the Fed's effort to balance inflation control and economic growth, with the policy framework undergoing careful adjustments. For investors, these speeches are an important reference for judging the future market direction.