Potential Hawkish Surprise in Powell's Upcoming Press Conference

According to BlockBeats, analysts suggest that U.S. Federal Reserve Chair Jerome Powell's upcoming press conference may present a hawkish surprise. In the absence of government data, Powell is expected to maintain the status quo without revealing much in terms of forward guidance. The market might be caught off guard if Powell expresses uncertainty about a rate cut in December, which could be perceived as a hawkish move, given the current market confidence in a December rate cut. Theoretically, any uncertainty regarding the December rate cut could lead to a decline in U.S. stocks, an increase in U.S. Treasury yields, with short-term yields rising faster than long-term yields, a significant strengthening of the dollar, and a drop in precious metals like gold and silver. Conversely, if Powell maintains his stance on the December rate cut, market fluctuations will likely continue to be influenced by developments in trade relations.