DislikedThe text of Benny's opening statement for his semi-annual testimony in front of the congressional financial services committee will be published at this site in 10 minutes (8:30 New York) (13:30 London) http://www.federalreserve.gov/newsev...3testimony.htmIgnored
Basically US economic indicators are improving according to the Fed's forecasts and if they keep up the pace, QE will be reduced (tapered) slowly between now and mid 2014. If economic indicators do not manage to meet the forecasts, then the tapering process will take longer. Obviously if things take a turn for the worse, then the Fed will increase monetary accommodation for a short period to help boost the economy until targets are reached.
In a nutshell, it's all up to the data. Therefore, theoretically we are back to normal where the USD will rise and fall based on actual economic data versus expectations.
My feeling it that a gradual recovery is already priced in at this point in time, so I will not be looking for any appreciation or depreciation of the USD going forward save and except when economic data releases exceed or miss expectations respectively.
Now let's see what he has to say during his testimony
Those who say it cannot be done should not interrupt those who are doing it