According to Odaily Planet Daily, Nomura Securities analysts wrote in a report: "Powell may admit that the Fed is ready to quickly ease policy if the labor market deteriorates."

The health of the labor market was called into question earlier this month when data showed the unemployment rate jumped to 4.3% in July, triggering the Sam rule.

"That said, we expect his comments to be more balanced than his July press conference - while also noting upside risks to inflation," the analysts added.

The market has entered a relatively calm state, and expectations for a rate cut from the Federal Reserve have eased. Last Monday, traders saw a 50% chance that the Fed would cut rates by 50 basis points next month. Now, the market is pricing in just a 23% chance of a 50 basis point cut.

Nomura Securities noted that the market calm "should allow Powell to emphasize that the Fed can remain patient and data-dependent, modestly refuting recent market overpricing of a rate-cutting cycle."