Good morning contrarians! Stocks are dropping in the pre-market and due to give back yesterday’s gains…

Federal Reserve chair Jerome Powell starts two days of testimony in Washington, D.C. today. Powell addresses the Joint Economic Committee and take questions from the politicos. Don’t expect anything in the way of nuanced or educated questions from these folks. They’ll all be trying to score political points for the cameras.

Still, some details may emerge regardless. Investors will be looking for any indication for when the Fed may stop its interest rate hikes and quantitative tightening. Specifically they’ll be looking for what Powell says the Fed will consider victory over inflationary pressures.

Ultimately it may not matter what Powell says. For one, it’s just Powell. For another, it’s just talk. He’s been known to throw markets a bone during times like these but remember what happened the last time he did that? To refresh your memory: he said rate hikes of more than 50 basis points were not being actively considered. Obviously that lack of active consideration didn’t last very long as the Fed raised by 75bps at their last meeting.

More here: