Put Options by Ben Bernanke, FED Chairman

The Semi annual Testimony and the F.O.M.C. minutes have both been Identical and were a significant Out liners of the FED, in terms of economic events and Time.
Dr. Bernanke has candidly acknowledged the Variables and Uncertainties arising.

Lets see: Bernanke's Put Options in terms of  Economy :
                               Conditions for the FED Put Option
 On the one hand, the possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risks might re-emerge, implying a need for additional policy support. Even with the federal funds rate close to zero, we have a number of ways in which we could act to ease financial conditions further. 
1)  One option would be to provide more explicit guidance about the period over which the federal funds rate and the balance sheet would remain at their current levels. 
2)  Another approach would be to initiate more securities purchases or to increase the average maturity of our holdings. 
3)  The Federal Reserve could also reduce the 25 basis point rate of interest it pays to banks on their reserves, thereby putting downward pressure on short-term rates more generally. 


                                 The Caveat for the above actions follows :


Of course, our experience with these policies remains relatively limited, and employing them would entail potential risks and costs. However, prudent planning requires that we evaluate the efficacy of these and other potential alternatives for deploying additional stimulus if conditions warrant.


                                               Analysis in term of the Market :


      A)   The FOMC minutes and Semi Annual Testimony has already giving the ' Explicit Guidance', however '
'Persistent condition' time span, can be  assumed to be till the Next F.O.M.C. Meet. 
             S&P500 = 1305-1325 range, Crude $ 95/ per BBL and USD Index = 75
 Pull factors : Better than Expected Result Season. i.e. Index earning $ 95-97 EPS.
 Pushing Down : Economic Indicators, Bond Yields
 Unconsidered Event : Socio Political Event and Natural Calamities, Spike in Oil Prices.


     B)    Jackoson's Hole Meet with Bankers May Be the Next Time Line.

It seems improbable FED to take any more tightening Action till 2 Meets. That's About 2-3 Months. And, Keep watching for the Next Clue
  The Probable Interpretation : FED Maintained the  duel stance One of tightening by avoiding continuation of  ' Asset Purchase program' ( QE-3) and Keeping it in its armour. Simultaneously, allowing market forces to  take over the reign on the economic activity and preferring to stay on the Mode of Observation. 
              The caveat for this Crystal Gazing is US Debt failure. Which is a ' Black Swan Event'