The U.S. Federal Open Market Committee earlier today released the decision that the current benchmark interest rate will remain at the existing 0.25% level. Market players and analysts had been almost unanimously agreed that the Fed's ultra loose monetary policy would remain in place, given the only slight improvements to the U.S. economy and the unemployment situation.

That release was just the prelude to what markets worldwide were eagerly anticipating, namely the unprecedented press conference to be held afterward, and presided over by Ben Bernanke, the Federal Reserve Chairman.

As analysts had expected, Chairman Bernanke used the press conference as a public forum to reitrate the need for rates to be held excessively low and for QE to remain in place.The Fed also related to inflation outlinig the risk for higher inflation has resen and has raised its inflation outlook to a range of 2.1%-2.8%. The chairman stressed that long term inflation outlook still remains low amid weak economic activity but added that it will not allow inflation to spin out control and will act if necessary.

'Several key members of the U.S. Congress have consistently and vociferously criticized the Fed's current, yet soon-to-be-concluded, quantitative easing scheme. The Fed's ability to hold and perhaps expand its QE program for a prolonged period hinges on Chairman Bernanke's persuasiveness.

The policy divergence between the Federal Reserve and the world's other central banks(ex Japan) could mean U.S. Dollar will be pushed even lower against most major currencies. Analysts suggest that GBP/USD could strike 1.70, while EUR/USD is targeted at 1.50. Already, AUD/USD has struck a new all-time record.

In the commodities arena, the depreciating dollar alongside strong emerging markets growth, prices are also likely to continue to soar. Analysts' consensus is now focusing on gold at the $1,550 to $1,600 range, while oil prices could rise to $120 a barrel.

Will Chairman Bernanke's presentation persuade Congress and more importantly, the markets, that its dovish stance is appropriate? That remains unanswerable for the time being; certainly, neither markets nor Congress are easily convinced.