The Fed has promised two seemingly inconsistent things.
1. to keep interest rates "extraordinarily low" well into 2014
2. to keep inflation at 2%
As noted, these are really only compatible if the economic recovery remains sluggish.
But, growth accelerated last quarter (and there is talk that number will be revised upward), and early indicators show that growth may be strong this quarter as well. Unemployment is falling, initial jobless claims are falling, Greece continues to be willing to eat Germany's sandwich.
If these trends continue, it will be a case of too much good news for The Bernank, and the Fed will face a tough decision about which promise to break.
So, come on American economy! Let's kick some butt and make the Fed rue their super-bearish forecast.