Powell will deliver a speech this Friday evening, and some traders have lowered their expectations for interest rate cuts

ChainCatcher news, Federal Reserve Chairman Jerome Powell will deliver a key speech at this annual gathering in Wyoming this Friday evening Beijing time. Meanwhile, the latest inflation data, which came in higher than expected, has prompted some traders to lower their rate cut expectations while still maintaining the judgment of a rate cut next month.

BMO Capital Markets' U.S. interest rate strategy head Ian Lyngen stated in a research report, "As the market prepares for Powell's speech in Jackson Hole, the biggest risk facing U.S. Treasuries is that the Federal Reserve Chairman may pour cold water on the market's widely held expectation of a rate cut in September."

Currently, about 325,000 options positions (costing approximately $10 million) could yield a profit of up to $100 million if the Federal Reserve cuts rates by 50 basis points at the September policy meeting. Additionally, current market pricing indicates that the probability of a 25 basis point rate cut at the meeting on September 16-17 is about 80%. (Jin Shi)