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The economy is one of the areas in which Powell will have to ride the fence.
Part of the problem of his communications at the end of 2018 was the perception of the market that Powell did not see that the global slowdown was beginning to be felt in the United States. the data showed.
This week, we then have the challenge of making the difference between an awareness of economic signals, but along with Powell's long-held belief that the United States seems to continue to grow steadily.
"There are signs of a real slowdown in the US So I think it would be nice to see the Fed recognize it," said Shawn Snyder, head of investment strategy. from Citi Private Wealth Management. "It would be nice to make him understand that he wants to maintain the expansion and not retain it."
The Fed's most recent communication was published in the January FOMC minutes, which indicated that the market's response to policy changes was a cause of great concern, with members highlighting the patient's position in favor of the FOMC. 39, a further increase in rates.
Snyder said Powell should continue to focus on a relaxed policy.
"At the moment, people think that the next political decision could be a rate hike or a rate cut," he said. "It would be good for the market to think that the next political decision would be a pause and potentially a rate cut.The market wants to hear them a little more dovish."
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