The current meeting of Finance Ministers in Davos is yielding some interesting views on the global outlook.
Federal Reserve Chairman, Ben Bernanke, through the Federal Open Market Committee, has indicated that
1) Benchmark interest rates (currently 0 to 0.5%) will stay low until at least late-2014. The previous officially stated timescale for this was mid-2013.
2) The Fed's officials have lowered their projections for economic growth and inflation for 2012 and 2013.
3) They are providing further monetary accommodation in an attempt to reduce the high and persistent level of US unemployment.
These comments have prompted speculation that the Fed will introduce Quantative Easing (Mark Three) in around April.
This is putting the US$ under some pressure, particularly againt the Euro.
Markets are buoyed by this overnight news and hopes of some resolution of Greece's situation in the next few days.
At some point, the underlying message of slower growth in the US is going to catch up with market sentiment.
