Opinion: Powell's speech after this week's interest rate decision is crucial to the market

Golden Finance reports that as the Federal Reserve's two-day meeting begins, investors have already accepted the fact that the Fed may not cut interest rates this time. However, at a vulnerable point in the stock market, what they are looking for is any signal from Fed Chairman Powell about inflation trends. John Belton, portfolio manager of Gabelli Funds said, "Powell's tone on inflation issues is crucial to Wall Street because traders need to hear that price pressures are continuing to ease and there is obviously potential black swan."

Traders expect the Fed will pause rate cuts but they're unsure how long it will last. This is why Powell's tone during his press conference after Wednesday afternoon's local time interest rate decision deserves attention. If he shows any attitude other than caution and unwillingness to commit, it would be out of character for him but Wall Street professionals will listen closely for anything in his wording or tone indicating his thoughts.