Preparing For Cliff

Fed shifted the qualitative and quantitative asset rules a bit today when they decided to use an economic outcome as a benchmark for continued accommodation; 6.5% unemployment rate.   In a news conference later, Bernanke seem to be preparing for what the Fed sees as a long drawn out battle for economic recovery, one that is threatened by a likely over the fiscal cliff event.  Equities seem to be convinced of a just in time end of year positive outcome to negotiations which may confirm the contrary.