Fed Chair Powell's Speech: The Two Words That Could Upset The S&P 500

The huge Jackson Hole, Wyoming address by Federal Reserve chief Jerome Powell on Friday is giving Wall Street a case of the nerves. 

The S&P 500 rally has been challenged along with a change in odds favouring another rate hike of 75 basis points on September 21.

But what exactly is Powell's remarks a cause for concern? After all, in his news conference on July 27, the Fed chairman discontinued forward guidance.

He is unlikely to take a position on the amount of the upcoming rate increase as a result.

The concern is that Powell would attempt to reverse the dovish impression he created during his news conference on July 27.

These remarks contributed to the S&P 500's 18% gain from its closing low on June 16 and the market's escape from a bear market.

Powell will however maintain his upbeat viewpoint that the Fed still has a chance to arrange a comparatively easy landing for the American economy.

Powell is too cautious to directly target stock prices, despite the fact that policymakers may not be thrilled with the stock market rally, which undermines their efforts to slow the economy.