Federal Reserve Chair Jerome Powell has begun his press conference, and financial markets are now fully focused on his tone and guidance. Investors are looking for any signal about when interest rates could be cut after the latest decision to keep them unchanged.
This moment is important because the Fed has already held rates steady, but has not clearly committed to the next move. That has left traders uncertain.
Markets are especially sensitive right now. Inflation risks are still present due to energy prices and global tensions. At the same time, growth concerns are building in parts of the economy.
Because of this mix, even small changes in Powell’s language can move markets. If he signals caution on inflation, expectations for rate cuts could be pushed further out. If he sounds more relaxed on price pressures, markets may start pricing in earlier easing.
For now, investors are in a wait and watch mode. The press conference is likely to set the tone for global markets in the near term.