Wall Street Opens Cautiously as Powell Signals No Policy Shift

Minimal shift; Powell's measured approach maintains Fed independence and signals continuity in monetary policy, preserving U.S. economic credibility internationally without major realignment of global financial influence.

Cautious/defensive framing emphasizing what Powell didn't say rather than market fundamentals; uses 'lingering concerns' and 'subdued' to establish uncertain tone while mentioning positive earnings almost parenthetically.

Consumers face continued uncertainty about borrowing costs and inflation trajectory. Lack of clear Fed guidance delays expectations for mortgage and credit relief, while strong corporate earnings (PepsiCo, Delta) may support employment stability.

Fed likely to maintain data-dependent approach rather than signal pre-committed rate cuts. Government shutdown complicates economic data interpretation, potentially delaying policy decisions. Future Fed communications from Barr and Daly will be critical in shaping market expectations and policy direction.