TechFlame reports that China Financial Research Report said that Federal Reserve Chairman Powell's speech at the Jackson Hole meeting was viewed by the market as a “dovish” signal that the currency is loosening. However, we believe that Powell's remarks did not give strong guidance on the continuation and extent of interest rate cuts, but only explained to the market the “response function” of the Federal Reserve's policy — that is, when employment risks outweigh inflation, the Fed tends to lower interest rates. However, under significantly higher tariff rates and tightened immigration policies, employment and inflation risks coexist. If the risk of inflation exceeds employment, Powell can still use the same “response function” to stop interest rate cuts. Therefore, the market should not regard Powell's speech as the starting point for a series of easing, but should recognize the challenges faced by monetary policy when employment and inflation targets are in conflict. If tariffs and immigration policies further push up “stagflation-like” pressure and dilemma the Federal Reserve, monetary easing in the true sense of the word will not occur at that time. Market risk appetite is likely to decline, and volatility will increase as well.