The overall gains in the U.S. stock market last night were good, with the main focus on Federal Reserve Chairman Powell's congressional hearing warning about the risks of maintaining high interest rates for a long time, which may imply that the Fed is considering relaxing its policy stance.

The Fed's mission has always been to balance the targets of unemployment and inflation rates, and Powell's hearing basically pushed the rhetoric of balance to the extreme.

But even with rebalancing, an undeniable point is that the current labor supply and demand have returned to the tight balance before the pandemic. If high interest rates persist at this point, the unemployment rate may be easier to rise than to fall. In this case, the upcoming CPI performance is crucial.