Powell "joined" the dovish camp, stating that economic risks provide stronger reasons for interest rate cuts.

According to a report from Jin10 on August 22, Fed Chairman Powell stated that the constantly "changing" economic risks provide the Fed with more sufficient reasons to cut interest rates. This statement indicates that Powell has aligned himself with the "dovish" camp of the Federal Open Market Committee responsible for setting interest rates, and it also signals that he may support a 25 basis point rate cut at the Fed's next meeting in September.

Although Powell acknowledged that the impact of the government's trade war on consumer prices is now "clearly visible," he hinted that this impact is unlikely to be sustained and may just be a one-time shock that the central bank can ignore.

He stated: "Given that the labor market is not particularly tight and faces increasing downside risks, this outcome (of persistent inflation rising) seems unlikely to occur." He also added, "Inflation faces upside risks while employment faces downside risks, which is quite a challenging situation."