The Concerns About the Economy, the Markets Hitting New Highs and the Debate About the Decoupling of the Markets From the Real Economy May be About to Get Some More Definition Wednesday. The Prevailing View is That the Markets Recent Rise is Fueled by Quantitative Easing and the Fed’s Purchases of $85 Million of Bonds Monthly.

Tuesday 5/21 St Louis Federal Bank President James Bullard Said “the Fed Should Continue its Bond Buying Because it is the Best Available Option to Boost Growth That is Slower Than Expected. However, it Should be Willing to Change its Size to Reflect Shifting Economic Currents. He Said That Quantitative Easing is “Closest to Standard Monetary Policy, Involves Clear Action and Has Been Effective” You Can See More Details of Bullards’ Speech at http://www.bloomberg.com/markets/economic-calendar/

Also on Tuesday New York Fed President William Dudley Said “He Cannot at This Point be Sure Whether the FOMC (Federal Open Market Committee) Will Next Reduce or Increase the Amount of Purchases, Due to the Uncertain Economic Outlook. But He Did Say That He Expects to See Sufficient Evidence to be More Confident About the Prospect for Substantial Improvement in the Labor Market Outlook.” You Can See More Details of Dudleys’ Speech at    http://www.bloomberg.com/markets/economic-calendar/

This Queues up Ben Bernanke’s Testimony at 10:00 AM on Wednesday 5/22 in Front of the Joint Economic Committee of Congress About His Economic Outlook. The FOMC Will Also Report Minutes of Their last Meeting at 2:00 P.M.

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