Inflation Nation

Not since Dickens has an audience been so eager to read the latest musings of their favorite author. Of course we’re talking about Ben Bernanke. Although it’s widely believe the Fed will leave rates unchanged Wednesday’s the Fed comments will be the summer’s must-read.

Traders widely believe those comments will reveal whether the Fed will remain focused on preventing recession or if they will turn attention to inflation. Although the language could be subtle, it seems likely to set the tone for the second half of the year.

”I think there are things the Fed won’t say,” CNBC’s Steve Liesman tells the Fast Money traders. "I don’t think the guys expecting the Fed to provide the rhetoric to lay the foundation for rate hikes in the months to come will get the meat they’re hoping for. I think there will only be a slight change in language that says there’s a an upside risk to inflation.”

In other words, the market could be ahead of the Fed on rates.

How do you trade?

I’d trade around it, says Jeff Macke, anticipating that the market will respond well to a steady as she goes message.

If you don’t think the Fed will be hawkish then get long gold because the dollar could get hammered, suggests Guy Adami.

I like that trade but I’d use a commodity other than gold, adds Pete Najarian.

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Trader disclosure: On June 24, 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), (GS), (INTC), (BTU), (NUE), (MSFT); Macke Owns (DIS), (WMT), (MSFT); Najarian Owns (AAPL), (HD), (NOK), (TSO), (XLF); Najarian Owns (WFMI) Puts, (MER) Puts, (DHI) Puts; Najarian Owns (YHOO) Calls, (EK) Calls, (UBS) Calls; Finerman Owns (GS)
Finerman's Firm Owns (AXP), (MSFT), (NYX), (PZN), (TSO), (VLO), (PPH); Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY); Finerman's Firm And Finerman Own (HD) And (HD) Puts