On September 30th Eastern Time, Federal Reserve Chairman Jerome Powell delivered a speech at the annual meeting of the National Association for Business Economics (NABE). The financial headlines read: "On the first day of China's holiday, the Fed delivered a heavy blow to the world!"

The key points of Powell's speech are as follows:

1. The U.S. economy is generally strong, and significant progress has been made in achieving full employment and price stability over the past two years.

2. The labor market conditions are robust and have cooled down from an overheated state.

3. Inflation has also eased, getting closer to our 2% target, with the risks of achieving employment and inflation goals being roughly balanced.

4. If economic development aligns with expectations, the Fed's interest rates will shift towards a more neutral stance over time, with no preset interest rate path, and risks are two-way.

5. The Fed is not in a hurry to cut interest rates rapidly. If the economic performance meets expectations, there will be two more rate cuts this year, totaling a reduction of 50 basis points.

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It is not apparent that Powell's speech "delivered a heavy blow to the world." Firstly, regarding interest rate cuts, it is consistent with market forecasts of another 50 basis points cut by the Fed before the end of the year. Secondly, it continues the consistent "art of expectation management," seemingly saying something but actually not saying much. Thirdly, such vague speeches also indicate that the U.S. economy faces serious issues, such as recession risks, banking system crises, inflation rebound, commercial real estate problems, and debt risks. In other words, facing such dilemmas or even multiple dilemmas, it is unclear what to do, let alone what to say.

What we need to do now is to boost the stock market, promote the stabilization of the real estate market, and expand domestic consumer demand, which means doing our own job well. In this way, it is easier to understand why the stock market is being lifted at this time.