Big speech in the day ahead
It's probably too early to signal a Fed rate cut but the market will want to see Powell at least crack open the door and signal that he hears what the bond market is saying.
Powell speaks Tuesday at 1355 GMT on 'policy strategy' at the ongoing Chicago Fed conference. He will talk about monetary policy strategy, tools and communications practices. There is no Q&A.
There's a chance he avoids talking about the current outlook and I think that would be seen as a mild disappointment but don't expect a quick reaction because he could also add in a media Q&A.
In terms of economic data:
- 1400 GMT factory orders with revisions to durable goods orders