Core Points - Federal Reserve Chairman Jerome Powell will deliver his final speech in Jackson Hole, Wyoming, focusing on potential signals for a September rate cut and deeper changes to the central bank's dual mandate [1] - The Fed is likely to abandon the "average inflation targeting" strategy, which was designed to prevent deflation during low inflation periods, and instead re-anchor to a single inflation target of 2% [1] - The current monetary policy framework is revised every five years, and this upcoming revision may have lasting impacts for several years [1] Group 1 - Observers believe that the previous tolerance for inflation overshooting led to the Fed's slow response post-pandemic and misjudgment of inflation, resulting in aggressive rate hikes [1] - Deutsche Bank and hedge fund professionals expect Powell to restore a forward-looking strategy and acknowledge supply shock risks in his speech [1] - Powell has previously warned of significant future inflation volatility and will optimize the policy communication mechanism, with investors keenly watching for any modifications to the "dot plot" report [1]

Group 1 - The Federal Reserve Chairman Jerome Powell is expected to announce significant changes to the Fed's policy framework during his speech at Jackson Hole, which may include a shift away from the "average inflation targeting" strategy [1][2] - The current framework, established in 2012, is set for a five-year review, and the upcoming adjustments will reassess the policies and communication strategies that were last updated before the pandemic [1][2] - Observers believe that the previous tolerance for inflation overshooting contributed to the Fed's delayed response to rising inflation post-pandemic, leading to aggressive interest rate hikes [2] Group 2 - Powell's anticipated speech is expected to restore a more forward-looking policy strategy while acknowledging supply chain risks and aiming to rebalance inflation and employment perspectives [2] - The need to optimize the Fed's communication mechanisms regarding economic forecasts and uncertainties is emphasized, particularly concerning the quarterly economic outlook report that includes the "dot plot" of interest rate expectations [2]