Recently, there has been a significant change in the financial market's expectations regarding the future monetary policy direction of the Federal Reserve. According to the latest data from the Chicago Mercantile Exchange ( CME )'s "FedWatch" tool, traders are warming up to the expectation that the Federal Reserve may take action to cut interest rates in September.

Specifically, the market expects that the probability of the Federal Reserve maintaining interest rates unchanged in September is only 25%, while the probability of a 25 basis point rate cut is as high as 75%. This data reflects that investors generally believe the Federal Reserve may begin to ease monetary policy in September.

Looking ahead to October, the market's expectations for interest rate policy are leaning more towards easing. Data shows that the probability of the Federal Reserve keeping interest rates unchanged in October has dropped to 13.3%, while the probability of a cumulative rate cut of 25 basis points is 51.5%, and the probability of a cumulative rate cut of 50 basis points is 35.3%. This indicates that most market participants expect the Federal Reserve to implement a series of rate cuts in the coming months.

However, these market expectations seem to give Federal Reserve Chairman Powell considerable policy flexibility. Given the current market sentiment, if Powell releases hawkish signals again in the upcoming speech, it may trigger a strong market reaction. This potential policy shift could have far-reaching effects on asset prices across various classes, including the financial markets involving cryptocurrencies.

Therefore, investors and market analysts will closely watch Powell's speech for clues about the future direction of the Federal Reserve's monetary policy. Regardless of the final outcome, the Federal Reserve's decisions will have a significant impact on global financial markets, and all parties are holding their breath, looking forward to clearer policy guidance.