FXstreet.com (Barcelona) - Influential Fed watcher Jon Hilsenrath has put out an article suggesting that ahead of next week's FOMC meeting, Bernanke is likely to cool down hopes that any possible tapering will not mean a tighter rates policy.

Fed tapering not equal to immediate rate hikes

According to Jon Hilsenrath: "Federal Reserve officials have been trying to convince investors for weeks not to overreact when the central bank starts pulling back on its $85 billion-per-month bond-buying program."

The editor went of to add that "an adjustment in the program won’t mean that it will end all at once, officials say, and even more importantly it won’t mean that the Fed is anywhere near raising short-term interest rates."

Opinion from market commentators

In view of Adam Button, editor at Forexlive: "I would take it a step further and argue that the market is pricing in more dovish comments from Bernanke. That’s why stocks are rising and the US dollar is slumping.·