Powell Merely Restating Language On Yields Likely Seen Hawkish (1/2)

Fed Chair Powell speaks in a moderated discussion at a WSJ event, with session scheduled to begin at 1205ET. (Website here.) As part of a jobs-focused event, the stated agenda is "the state of the American economy, the potential impact on Main Street and how that will translate to jobseekers". But of course markets will be looking for Powell to address the recent run-up in yields.

• Powell was asked last week at his Senate testimony what his message for markets was - he responded that policy "is accommodative and will continue to be accommodative"..."Expect us to move patiently and carefully and with a lot of advance warning..." Such sentiment is likely to resurface in some form or another today.
• In the context of the event, Powell likely to emphasize the labor market is well below pre-pandemic levels (e.g. 10mn jobs down), and note that inflation rises this year are likely to be "transitory", so it is "likely to take some time for substantial further progress to be achieved" before Fed tightening.
• Yields have of course moved in a hawkish direction since Powell's Congress testimony last week, potentially warranting a more robust restatement of the Fed's intentions.
• Merely saying what he (and other FOMC officials) said last week regarding the rise in yields being "a statement on confidence on the part of markets" would be considered hawkish, as would pointing to fin conditions remaining accommodative and therefore not warranting immediate Fed action.