Today, the FOMC rate cut decision will be released at 2pm ET.

The market is expecting a rate pause at this meeting, so it won't impact the market much.

What's even more important is Powell's speech and the Fed's language.

The job market is still very weak, but inflation has started to run hot due to the US-Iran war.

US CPI jumped almost to a 2-year high, while Core CPI is also moving up.

This could definitely make the Fed a bit hawkish, given that oil prices are still going up, which could increase the chances of higher inflation.

Another reason this FOMC is important is that this could be the last one for Powell as the Fed Chair.

Markets would like to see how Powell sees the economy in the coming months/years.

If Powell hints at a rise in CPI as temporary, markets will start pricing in rate cuts and more liquidity injection.

If Powell thinks CPI will run hot for long, there could be a dump similar to what we have seen after the past few FOMC meetings.