All eyes on 3 key Fed events Wednesday

What the world hopes to hear Wednesday from the Federal Reserve can be summed up in one word: clarity.

Chairman Ben Bernanke will be pressed to settle the wave of confusion and speculation that's consumed investors since he spoke to Congress last month about the Fed's drive to keep long-term interest rates at record lows.

Would the Fed scale back its $85-billion-a-month in bond purchases within "the next few meetings," as he suggested to Congress at one point? Or does the job market remain too weak for the Fed to slow its stimulus, as Bernanke said at another point?

The Fed's bond purchases have been intended to hold down long-term loan rates to induce Americans to borrow, spend, and invest in the stock market.

Ultralow rates are credited with helping fuel a housing comeback, support economic growth, drive stocks to record highs and restore the wealth America lost to the recession.

Conflicting statements from other Fed officials have further clouded the outlook for the bond-buying program. That's why the pressure for the Fed to clarify its message has intensified in recent weeks.

Here's what to look for from three key events Wednesday:

Fed statement: The Fed has repeatedly said it will buy $85 billion a month in Treasury and mortgage bonds until the outlook for the job market "has improved substantially."

Almost no one expects the Fed to announce that it will start reducing its bond purchases immediately. But it might specify what it means by a substantial improvement in the job market.

Economic outlook: If the Fed downgrades its outlook for growth and employment, it would suggest that officials think a still-weak economy continues to need substantial Fed stimulus. Investors would likely conclude that the Fed won't scale back its bond purchases soon.

If, on the other hand, the Fed upgrades its outlook, it would be seen as a signal that it thinks the economy can now manage with less stimulus. The likely conclusion: that the Fed is moving closer to reducing its bond purchases.

Bernanke news conference: The day's major event is Bernanke's session with reporters. And the question is how far he'll go to define a substantial improvement in the job market and to clarify the Fed's timetable for slowing its bond purchases.

During his news conference, Bernanke will likely be asked to address the widespread assumption that he will leave the Fed when his second four-year term ends in January.

President Barack Obama, in an interview with PBS that aired Monday, hinted that Bernanke will step down.

Janet Yellen, the Fed's vice chair, is considered the front-runner to succeed him.