Powell's possible statement and its market impact:
Labor market stability: If Powell makes it clear that the Fed will take precautionary measures to prevent weakness in the labor market, this will signal to the market that the Fed may not cut interest rates too early in the early stages of an economic slowdown. Such a statement may increase market expectations that the Fed will stick to its tightening policy, which may lead to higher interest rates in the short term and pressure on the stock market.
Inflation target and policy easing: If Powell mentions the possibility of gradually lifting policy easing measures, the market may interpret it as a victory for the Fed's control of inflation and expect a more relaxed monetary policy cycle to come. This may be a short-term positive for the stock market, but it may also trigger fluctuations in long-term interest rates.
