Today's FOMC minutes are pretty interesting. They highlight a potential end to QE in 2013.
This is going to be the big story later this year. The Fed appears to be positioning for a transition at the helm, in my opinion.
In my 10 questions for 2013, I said:
Downside risk: Ben Bernanke is likely to step down in 2014. Could he become less accommodative later in the year in order to create flexibility for a smoother transition?
Or could policy take an unexpected turn due to the uncertainty that is likely to develop in the market surrounding this event?
It will be interesting to see how this thinking evolves as 2013 plays out. The end of the "Bernanke Fed" will bring substantial uncertainty and volatility to the markets.
It would be nice if they could provide more clarity on this.