Analysts at TD Securities (TDS) provide a snippet of what they expect from Fed Chair Jerome Powell’s testimony, especially after the hawkish FOMC minutes.

Key quotes

“Focus shifts to Fed speak with Powell's nomination hearing, where we will be on alert for hints about QT and lift-off timing. Judging by recent Fed rhetoric, it seems like the Fed is of the mindset of sooner rather than later when it comes to either major policy questions.”

“An affirmation of March tightening and early QT should support USD firmness overall though within well-established ranges.”

“Markets will focus on Chair Powell's renomination hearing at 10am EDT for direction. Recent hawkish comments from Fed members and the December FOMC minutes suggest that despite Omicron cases surging, the Fed may still look to hike and allow balance sheet runoff more quickly.”