US economy is facing tough times and the following two events are keenly watched by all the analysts, economists and investors around the globe.

Ben Bernanke will deliver a speech on Friday at an annual gathering of Central Bankers in Jackson Hole, where last year in his speech he signaled a US$600 billion program of Bond purchases for recovery of the economy. The markets this year also is expecting that the Fed will take some similar steps to move the ailing US economy.

But this time the markets may be disappointed by the Fed's move as Bernanke and other Fed leaders are viewing current signs of weakness differently than the last year. They have signaled that they would wait for some more readings and would only do so if the economic data justified it.

Presently rising consumer prices in US are also a concern, last year the inflation was very low when he announced the QE2. The Industrial Production figures of July were also encouraging and signaled that the economy is growing.

The US Economy will also announce its Q2 GDP numbers tomorrow. The market is expecting a data of 1.10% annual growth compared to a growth of 1.30% estimated earlier. Last quarter the GDP grew by 0.4%

The Fed's action in whichever direction will have a temporary reaction in the financial markets, and will indicate how the Fed will try to resolve the challenges faced.