Flader said he believed a larger question that must be solved before the Fed can make a grand decision like ending its quantitative easing programs is to see what Congress does in the coming months.
With a looming debt ceiling battle, a solution to the sequestration and possible entitlement reforms with regards to the budget, the Fed may wait for these matters to be settled before it makes a determination whether there is enough stability for the bank to pull back.
If legislators smoothly figure out these issues, and business growth improves in the second half of the year, then the hawks may be perched in a fine nest.
-- Written by Joe Deaux in New York.>Contact by Email. Follow @JoeDeaux