As a consequence of the comments originating from the San Fransisco, Federal Reserve indicating a downward trend people are assuming that the Federal Open Market Committee is likely to create an environment of ease during the scheduled meeting.
The prevailing situation is source of great pressure on the Federal Reserve Chairman, Ben Bernanke to take effective measures as stated by Mark O’ullivan, a director Currencies Direct.
Although the targeted FED funds rate by it’s effect is zero. The central bank possibly attempt quantity based easing, where there is increase in the money supply by measures other than rates, like purchase of Government bonds.

