Could the message be in the lineup of speakers so far?
I'm starting to think that maybe the parade of hawks they rolled out to speak ahead of Powell, followed by Mester -- who is a moderate-hawk -- that we're being set up for a not-so-dovish Powell.
There's been a parade of speakers all on the hawkish side in the past two days and they're all singing from the same choir-book.
Mester is generally closer to Powell's thinking than anyone else we've heard speak today. That's why the dollar jumped when she said that the economy has 'basically' met the threshold for substantial further progress on inflation and employment and that she expects to start talking about a taper in September and starting it before year end.
The market is expecting Powell to tread lightly because of recent dips in economic data on the consumer side and due to delta concerns. Mester brushed those off though, saying that companies are still seeing strong demand.
The market is seeing this as a potential preview of what Powell will say at the top of the hour.
