While it is widely accepted that the Fed will keep the current Fed Funds rate at 0 to .25%, many market participants are hoping for minor changes to the text, specifically the rhetoric which gives a timeline on current Fed Funds rate strategy: rates will be low for an “extended period”. Most want to see the Fed provide a clearer outlook on when to expect an interest rate hike. Others expect the Fed to be slightly more upbeat about the economy and more defensive of inflationary pressures. We are looking for limited changes as Bernanke is not likely to spook the markets in an illiquid environment. In the short run, AQ says the recent trend of rising rates may be due a short term correction if the Fed sends a more downbeat economic message and re-iterates that inflation remains subdued due to considerable "resource slack" in the economy. More than anything, we do not want to hear that inflation concerns are growing at the Federal Reserve, this would be the worst case scenario for mortgage rates....