Internet reports that Federal Reserve Chairman Powell faces a difficult task this week. In the interest rate decision early Thursday morning, he must not only reassure investors that the economic foundation remains solid, but also convey that policymakers will be ready to intervene if necessary. Powell touted the resilience of the U.S. economy as Trump's rapid escalation of the trade war sparked unease and caused U.S. stocks to fall sharply in the past month. As concerns about the economic outlook intensify, consumer confidence is declining and bond yields are falling. "Powell needs to send some kind of signal that they are watching the stock market," said Dominica Constance, head of U.S. macro strategy at Mizuho Securities. Officials cannot ignore the recent decline." Economists generally expect the Federal Reserve to cut interest rates twice this year. Some investors have warned that if officials continue to signal interest rates only twice in 2025, it will become even more necessary for the Fed chairman to emphasize that the Fed is willing to adjust borrowing costs if labor market problems arise. "The Fed may marginally make things slightly better or slightly worse," said James Esser, portfolio manager at Marlborough Investment Management. But obviously they couldn't fully calm the markets because the main blow to market sentiment came from the White House." In addition to issuing escalating and changing tariff threats to trading partners, the Trump administration has not done much to downplay the risk of a recession. (Jin Shi)