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Morning Call: Will The Fed Ease Wall Street's Worries?

Federal Reserve Board Chairman Ben Bernanke poses in the board room of Federal Reserve headquarters Friday, Jan 26, 2007, in Washington. Bernanke and his colleagues gather Tuesday, Jan. 30, 2007, for a two-day meeting to discuss what is needed to keep the economy on track and improve the central bank's communications with Wall Street and Main Street. (AP Photo/Manuel Balce Ceneta)
Manuel Balce Ceneta
Federal Reserve Board Chairman Ben Bernanke poses in the board room of Federal Reserve headquarters Friday, Jan 26, 2007, in Washington. Bernanke and his colleagues gather Tuesday, Jan. 30, 2007, for a two-day meeting to discuss what is needed to keep the economy on track and improve the central bank's communications with Wall Street and Main Street. (AP Photo/Manuel Balce Ceneta)

Federal Reserve policymakers kick off their two-day meeting tomorrow and with a recent uptick in volatility, Wall Street will be watching the meeting very closely. We asked two market pros if they believe the Fed will ease Wall Street's worries.

"What investors want to know is, will the Fed continue to maintain this glass-is-half-full optimistic viewpoint," said Bill Strazzullo, chief market strategist at Bell Curve Trading.

"The market wants to hear the Fed's most current assessment on this subprime mortgage situation and what the impact is going to be on the broader economy."

Strazzullo says the market wants the Fed to cut rate sooner rather than later.

"I think there has been some level of confusion because you have the former Chairman Greenspan out talking about spillover effects that he sees at some point in the future and also talking about a one-in-three chance of recession somewhere down the line," he said.

"You've got the current Fed Chairman Bernanke with a much more upbeat view of the subprime mortgage situation."

But Jeffrey Saut, chief investment strategist at Raymond James, says until the Fed knows where the economy is going, it will not cut rates. He doesn't expect the Fed to say much this week.

"I don't think the Fed can figure out if the economy is going to slow dramatically, muddle forward or actually reaccelerate," Saut said. "Until you get more datapoints as to where the economy is going, I think they are going to sit on their hands."