Federal Reserve policy hinges on fiscal cliff negotiations: Credit Suisse

The US Fed's policy and extent of asset purchases will depend on the outcome of negotiations on the US fiscal cliff, says Robert Parker, head of strategic advisory group at Credit Suisse. He feels the Fed may hedge its bets at this meet and indicate its willingness to increase asset purchases if fiscal cliff negotiations don't go smoothly. He adds that he expects an agreement on raising the debt ceiling to be reached before year-end, but negotiations on spending cuts and tax increases may extend into the new year.