The commentary will be hawkish. The cut is happening because the market expects it, not due to compelling data. Chair Powell will likely signal that a January cut is not a sure thing and probably won't happen, with risks tilting toward tighter policy versus market expectations.

The recent market rally is driven by liquidity and expectations for Fed rate cuts next year, which is unsustainable. If the next chair cuts while inflation remains at 3% or higher amid current growth, interest rates will rise meaningfully. This would damage high-valuation speculative excesses across cryptocurrencies, credit spreads, meme stocks, and SPACs.