When Ben Bernanke and the Federal Reserve announced the details of its $600 billion bond buying plan on 11/03/10, they did not expect to receive the amount of criticism that has come their way.  From both foreign and domestic sources, critics have voiced concerns that the purchase of $75 billion of Treasury notes every month through June 2011 will just as likely weaken the US dollar and ignite future inflation as it will accomplish the intended goal of lower domestic interest rates.  Fed officials (Chairman Bernanke, Fed Vice-Chairwoman Janet Yellen and the President of the New York Fed Bill Dudley) went on the offensive last week, dismissing outright that a weak dollar (which is beneficial to US exporters) or that renewed inflation are likely consequences of the central bank's actions (source: Federal Reserve). 

In the short run however and much to the chagrin of the Fed, interest rates have surprisingly moved up and not down.  This rise in rates may suggest that bond investors are anticipating higher inflation and are selling their bonds now (pushing prices down and yields up) to lock in prior gains.  If rates do continue to go up instead of down, the Fed may be forced to decide within a couple of months if following through to completion on its originally stated 8-month plan is its best course of action (source: BTN Research).              

It has been almost 3 weeks since the 11/02/10 mid-term elections, but 5 House races are still to be decided.  Republicans have gained at least +61 seats in the House (with the 5 unfinished contests yet to be counted) and +6 seats in the Senate (source: Congress).