The CPI report continues to be encouraging. These numbers are stimulating consumer spending by giving consumers more spending power. At the same time, lower inflation will also encourage the central bank to do whatever they need to do.

The CPI report continues to be encouraging, ... These numbers are stimulating consumer spending by giving consumers more spending power. At the same time, lower inflation will also encourage the central bank to do whatever they need to do.

The market doesn't want to see too much exuberance on the part of consumers in order to keep the central bank at bay.

That report certainly reveals the recession is not over. The gains we had in September are not sustainable and illustrate why the central bank has to continue to lower rates. At this juncture, the easing of rates basically is serving as a consumer confidence booster.