In just a few minutes, the US Federal Reserve's decision on the key interest rate will be announced, and half an hour later, the head of the regulator, Jerome Powell, will make comments. This event promises to be a powerful trigger for increased volatility in the risky asset markets in the next hour and a half.
The scenario of the decision itself is predictable: the markets are pricing in the rate being kept at the current level. However, the main intrigue is connected with Powell's rhetoric. Donald Trump has already openly called for a significant reduction in rates, and therefore any hints from the head of the Fed about the possibility of future easing of monetary policy may cause optimism among investors.
If Powell admits in his speech the possibility that the regulator is ready to consider Trump's proposals or at least begin to discuss possible steps in this direction, this will be a strong signal for the markets. Otherwise, the Fed's tough stance may lead to a surge in uncertainty and sales. All eyes are on the upcoming statements.