The Federal Reserve's monetary policy update is less than an hour away, and will be followed by the new conference with Fed Chairman Jerome Powell.
It will be a tricky meeting for Powell, who will have to talk the economy down, Danielle DiMartino Booth, CEO and chief strategist of Quill Intelligence, told Alison Kosik on the CNN Business digital live show Markets Now.
Following last week's much better-than-expected jobs report, which showed 2.5 million positions were added to the US economy versus experts' expectations of 8 million lost jobs, more voices have gotten louder about the reopening rebound. President Donald Trump has characterized the economy's rebound as a rocket ship earlier this week.
At the same time, the market is pricing in ultra-low interest rates will be in effect for years to come. Lower rates are good for stocks because they allow companies to borrow at cheap interest rates.
This is a thorny issue for the Fed," DiMartino Booth said. "Disappointing markets at this point is very risky given that valuations have popped up to the highest on record."
Stocks have been rallying in recent weeks. The Nasdaq Composite is on track today for its third consecutive all-time closing level.