Less than few minutes the most important speech of the week will publish , Federal Reserve chairman Ben Bernanke speaks to the Kansas City Fed conference in Jackson Hole at 10 a.m. Eastern Time . Most of the markets include Stocks and Forex Market with major investors in the whole world are waiting for this speech . They will be listening for clues on what the Fed is prepared to do if the economy continues to show signs of slowing. Many are doubtful the central bank chief will announce a full-fledged third bond-buying program, commonly known as quantitative easing, or QE3. This is his first appearance since the Aug 9 FOMC meeting. His speech is titled "Near- and long-term Prospects for the US Economy."
Ahead of the speech, the final reading of August consumer sentiment is due out at 9:55 a.m.
"We do not anticipate that extreme measures, such as QE3, will be suggested in this year's meeting," said economists at Nomura, noting Bernanke used his speech last year to describe "additional stimulus" and then followed up by announcing QE2 a few months later.
"The deflation risks that were present at the time of last year's meeting are absent," they added. "We expect Chairman Bernanke to reiterate the Fed's tools for easing and seek to restore confidence in the central bank's ability to respond to shocks as they arise. He may also explain the role of the Fed's balance sheet - in terms of size and composition - in monetary policy."
