What Kind Of Bird Is Bernanke?

Given the shifting rhetoric from the Fed recently investors are keeping a watchful eye on the two-day Fed meeting next week. Will their priority be fighting inflation or simulating growth?

For insights we turn to MKM Partners economist Mike Darda. Following is a synopsis of what was said during his interview on Fast Money.

I don’t think the Fed will raise rates next week, but they will probably harden the language they use when talking about inflation risk which got a bit more hawkish in the last meeting, says Darda.

Inflation expectations have been creeping higher and the Fed is trying to bat them down with talk and threats of action.

Futures markets expect a 50 bps hike by November and a 75 bps hike by early next year. Personally, I think the Fed hikes this year, but probably not until the fall or winter.

On the flip side, further cuts are off the table even if the economy or the financial markets get worse.

How would you play it?

As bad as they look the bank stocks might be worth a trade. Their credit spreads have been looking better and they tend to be a good leading indicator.

What do you think? What will Bernanke reveal himself to be next week, a hawk or a dove? Answer the Charles Schwab Question of the Day.

Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to fastmoney@cnbc.com.

Trader disclosure: On June 20, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Macke Owns (INTC), (MSFT), (WMT), (DIS); Najarian Owns (AAPL), (BHI), (CHK), (ENER), (NOK), (TSO), (XLF), (HPQ); Najarian Owns (MER) Puts; Najarian Owns (MYGN) Calls, (SD) Calls; Najarian Owns (HRB) Puts; Quint Tatro Is The Principal Of Tatro Capital; Tatro Owns (C), (DV), (PETS), (STRA), (ESLR), (GLD), (GLW), (GS), (QQQQ), (RIMM), (SDS); Tatro Capital Owns (SLV), (ASTI); Tatro Capital Owns (USO) Puts

Terranova Owns (FXC), (IYT), (XLF), (YHOO), (LUV), (GOOG), (CME), (FCX), (SU), (BNI), (INTC); Terranova is chief alternatives strategist at Phoenix Investment Partners; Phoenix Investment Partners Ltd. Owns (RWX), (DBC), (DBV), (IGE), (AAI), (ALK), (AMR,) (APA), BP plc, British Airways plc, (CHK), (CVX), (COP), (CAL), (DAL), ENI SPA, (XOM), Gazprom, (HA), (HES), (HOC), (HSE), (JBLU), Lukoil, (MRO), (MUR), (OXY), Petrobras Intl Fin, Petro-Canada, (PBR), Petroleos De Venezuela, (QAN), (RJET), Royal Dutch Shell plc A Shares, (SKYW), (LUV,) (SU), (TSO), Texaco Capital, Total SA, (UAUA), (LCC), (VLO)