Powell's press conference on trial

The press conference is the Fed's live chance to clarify, soften, or sharpen the message from the statement and projections. With markets already sensitive to rates and growth, Powell's tone can matter as much as the policy text itself.

The press conference is where the market looks for the real message behind the statement. If Powell leans hawkish, yields can back up and growth stocks may fade; if he sounds more worried about growth or financial conditions, the market can quickly price in a gentler path.

If his tone is balanced and mostly repeats the statement, the move may be smaller because traders will already have the projections in hand. In this kind of week, the press conference often matters because it can confirm — or undo — the first reaction to the Fed's written message.

When the Fed speaks, the first question for lenders is where short-term rates and the yield curve are headed. That affects deposit costs, lending spreads, and the mood around the whole financial group.