This is the most eagerly awaited event of the week for the myriad investors all over the world who are unsure which way the market would turn ahead chairman's speech at a central bank's meeting – because they expect Bernanke to spell out what he wants the Fed to do in response to the unexpected and rapid worsening in the health of the US and global economies.

Most of the analysts have grown skeptical about a further round of quantitative easing, or "QE", in which a central bank buys assets from banks with electronically-generated cash to pump liquidity into the economy.

There is also an argument based on the failures of QE1 and QE2. That is, that the Fed cannot be seen to do nothing.

Well there is a counter-argument from influential economist Nouriel Roubini that whether or not Federal Reserve head Ben Bernanke announces another round of quantitative easing Friday doesnt matter, it will be a reality later this year, he told CNBC Thursday.

"The reality is were heading toward recession, and one of the few policy bullets [the Federal Reserve] has left is monetary policy or QE3," Roubini said.

Many of the investors and traders are covering their shorts and selling longs to have a neutral position so that they can reassess their trading position on Monday after the speech.

US Stocks ended lower on Thursday. Dow Jones Industrial Average fell by 170.89 points and 1.51% to 11,149.82 in closing trade, while S&P 500 dipped 18.33 points and 1.56% to 1,159.27, and the Nasdaq Composite dropped 48.06 points and 1.95% to 2419.63.

Asian stocks after morning bell are on a wild swing between gains and losses on various speculative activities as US stocks ended lower.

Japan's Nikkei 225 Stock Average added 9.21 points to 8,781.57 at 10:15 am IST, China's Shanghai Composite Index lost 20.54 points and was at 2,594.72 same time, while Hong Kong's Hang Seng Index dropped 42.41 points at 19,710.07.

While over the Indian stock exchange front, BSE Sensex was seen up by 19.32 points at 16,165.88 and S&P Nifty added 6.45 points at 4845.32.

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