FXStreet reports that TD Securities analysts said that they expect Fed Chairman Jerome Powell to communicate that the recovery remains broadly on track and that more progress is expected despite growing concerns from the coronavirus Delta variant.

"Powell will likely acknowledge that the Committee has begun discussions about tapering plans, but also to remark that reaching the standard of "substantial further progress" still remains a "ways off"."

"US real GDP likely rose strongly in Q2, albeit not quite as strongly as in the consensus estimate, with real consumer spending probably posting double-digit rates of growth again. Core PCE prices likely jumped a strong 6.0% q/q AR."