The action believed to be taken on preemptive basis against inflation and inflation expectations, since Mr. Bernanke and members of the Federal Reserve reiterated their inflation based fears and the downside effects it will bestow on growth that is still standing at a turning point.

Markets now have limited their expectations of any actions to be taken this Wednesday as steady rates it is. The week is actually crucial for the U.S economy as though the decision is much expected while the accompanying statement is to be the most focal concern major economic data are on the queue for release this week though today's start is rather free yet only the quiet before the storm.

We have more on the U.S housing market this week especially after the Housing Starts report suggested ongoing weakness prevails this weeks we have sales of new and previously owned homes for May which is still a major concern for the U.S economy, since the credit woes are back hunting financial institutions as they are expected to continue battling writedowns and ailing collateralized holding well into 2009 which is more softness for the economy that just according to the Feds escaped the death bed of deep recession and is only within sluggish performance territories.

As contraction was once the most dominant probability for the U.S GDP, figures showed otherwise, and this week the final GDP reading is to be released after the preliminary was revised to 0.9% which I still see as ambitious concerning the contributing portions in the equation where thoroughly inspecting performance we'll find that the US growth is still much behind the headline.

More on income and spending is as usual on the queue as we can't wait upon the GDP without the accompanying PCE. Tax rebates that were given out for the Americans have surely supported their spending above expectations as they were already suffocating from rising food and energy prices along side a weak labor market, for that the extra money was surely pulled back into the economy helping in not failing the Feds expectations.

The sentiment is still the same for the U.S rates are accommodative to revive growth and the focus is to assure price stability while output capacity is on the rise. Now markets are devouring U.S data carefully attempting to balance pipeline pressures and growth pickup signs to assure the timing and extent of the Feds next move on rates which is still surrounded by high uncertainty taking into consideration that short-term spike in commodities fanned inflation materializes into medium-term effects of price stability. The cohesive economic picture is in the spotlight as no decision will be based but on the aggregate correlated inputs for the American economy and this week has it all so get ready to be amused by the surprises the economy is to present...