Investors will be watching the action in exchange traded funds (ETFs) tracking the dollar and U.S. Treasury bonds Wednesday as Federal Reserve Chairman Ben Bernanke faces off against a room of reporters.
An ETF investing in long-term bonds, iShares Barclays 20+ Year Treasury Bond Fund (NYSEArca: TLT), is essentially flat for the year. However, the PowerShares DB US Dollar Bullish Fund (NYSEArca: UUP) has been pummeled in 2011 by a weaker greenback.
Bernanke will be holding a first-ever press conference Wednesday following the Fed’s announcement on interest rates.
Standard & Poor’s recent demotion of the U.S. credit outlook to negative will likely be a topic of discussion. The Fed chief will also likely face questions over rising inflation fears and the central bank’s bond-buying program.