Tomorrow the Federal Reserve will take its high wire act to new levels. It will attempt to convince the markets that the U.S. economy is improving but is not so improved that it can do without $85 billion a month in quantitative easing.Fed Chairman Ben Bernanke has two contradictory audiences to placate, equity traders and bond traders.Equity traders love low rates and have learned to love quantitative easing.  Bond traders are agnostic. Low rates or high rates are largely immaterial, what they…See More

Today is the big day as FED Chairman Bernanke is expected to share his views on economic performance. There are two possibilities that either FED may opt to hold and may continue with its $ 85 billion bond purchase policy or may announce shift its policy stance.As we all know that language will be the key, if he hints that FED will/plans/decided to scale down the size of its bond purchase in the coming months could upset the Doves or unless Federal Reserves Chairman announces delay in rolling…See More