Federal Reserve Rate Decision Coming Soon

This week's most closely watched market event will focus on the Federal Reserve's rate decision announcement early Thursday, while Powell will also deliver an important speech.
Currently, the market generally expects the Fed to likely keep interest rates unchanged for now, and there will be no immediate rate hikes or cuts. Therefore, the outcome of the rate decision itself carries limited suspense, and the key factor that truly influences short-term market trends and triggers volatility lies in the policy signals conveyed in Powell's speech.
The current geopolitical situation continues to escalate, with ongoing tensions between Iran and the U.S., and market concerns about a new round of inflation rising. This has also become one of the core focuses of this meeting.
The outside world is highly attentive to how Powell will assess the inflationary pressures brought by geopolitical risks, as well as his latest judgment on the future monetary policy path and the global market outlook.
The subsequent market movements will still heavily depend on the stance expressed in the speech:
If a dovish signal is conveyed, it may boost risk appetite and lead to a phased recovery in risk assets.
If a hawkish tone is conveyed, coupled with persistently rising PCE data, the combined pressure could cause a significant adjustment in global markets, with short-term volatility possibly intensifying.
Overall, the early morning speech will become an important market indicator, and even subtle changes in policy wording could quickly transmit to asset prices across various markets.