Powell will give a speech this Friday evening, and some traders have lowered their interest rate cut expectations.

On August 20, Fed Chairman Powell will deliver a key speech at this annual gathering in Wyoming on Friday evening, Beijing time. Meanwhile, the latest inflation data, which exceeded expectations, has led some traders to lower their rate cut expectations while still holding onto predictions of a cut next month. Ian Lyngen, head of U.S. interest rate strategy at BMO Capital Markets, stated in a report, "As the market prepares for Powell's speech at Jackson Hole, the biggest risk facing U.S. Treasuries is that the Fed Chairman may dampen the market's widely held expectation of a rate cut in September." Currently, approximately 325,000 options positions (costing around $10 million) could yield as much as $100 million if the Fed cuts rates by 50 basis points at the September policy meeting. Additionally, current market pricing shows that the probability of a 25 basis point cut at the meeting on September 16-17 is about 80%. (Jin10)