Gavyn Davies - Operation twist and shout at the Fed

Gavyn Davies - Operation twist and shout at the Fed As the Fed starts its special two-day FOMC meeting, economists are uniformly expecting a further easing in monetary policy, and markets have priced this in. It would be surprising if the Fed did not deliver.

The FOMC will be mindful of the fact that US core inflation has risen in the past few months, but the majority still seems confident that this will prove temporary. Recession risks, on the other hand, would quickly return if the Fed allowed financial conditions to tighten. That will be uppermost in their minds at this meeting.
http://link.ft.com/r/3JFELL/C4YW6J/268VPS/VLUJ9P/WTGNYQ/B7/h?a1=2011&a2=9&a3=20