The Federal Reserve is about to announce the results of its policy meeting, with the market widely expecting a 25 basis point cut. However, what truly influences market nerves is Chairman Jerome Powell's subsequent speech. Every word he says could become a key factor affecting the direction of the marketplace.

The current situation is like a game played blindfolded. The U.S. government shutdown has led to missing key economic data, posing greater challenges for the FED's decision-making. Although recent inflation data has been below expectations and the employment market shows signs of weakness, there are divisions within the FED.

One faction, represented by New York Federal Reserve President John Williams, advocates for taking preemptive measures for the employment marketplace; another, led by Kansas City Federal Reserve President Esther George, warns against ignoring inflation risks. Powell's challenge this time is to find a balance between these two viewpoints, as each change in his wording could trigger intense market reactions.

For investors, the focus mainly centers on two aspects:

1. If Powell explicitly hints that future rate cuts will continue and even announces an early end to balance sheet reduction, this will be seen as a signal of easing policy. In this case, risk assets may rise, especially liquidity-sensitive assets such as technology stocks and encryption.

2. Conversely, if Powell adopts a so-called "hawkish rate cut" strategy—cutting rates but simultaneously sending cautious signals—the market may be disappointed, leading to a decline in asset prices.

Regardless of the outcome, this FED meeting will have a profound impact on the global financial marketplace. Investors need to closely follow Powell's words and how the marketplace interprets and reacts to this information.