Ben Bernanke said when the economy improves they will tighten monetary policy.
My colleagues at the Federal Reserve and I believe that accommodative policies will likely be warranted for an extended period,” Bernanke said at a Board of Governors conference yesterday in Washington, echoing language from last month’s meeting of the Federal Open Market Committee. “At some point, however, as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation problem down the road.
In response to just these nebulous sentences on when exactly they would increase the benchmark rate from essentially zero, the dollar rose the most in 2 months.
Bernanke's entire speech is here.
What is almost amusing is how mortgage backed securities (MBS) as well as GSE debt is listed as assets on the Fed's balance sheet.
If you are playing Gold vs. the Dollar, here is a recent survey but before these remarks.