One month doesn't make a story. But it's certainly very encouraging, especially with the market worried about inflation.

This gives the Fed license to continue executing monetary policy. If they see any signs of slow growth in employment, industrial production, or retail sales, they certainly have the green light to make another cut. They have total flexibility to do whatever it takes to prevent a recession.

Futures are down this morning, feeling the pressure of Texas Instruments' weak forecast. Now it is clear that growth is certainly going to slow. The question is, by how much?

The jury is out on this one. He's certainly going to make a big splash in this area. Whether he loses or not, we don't know.

The report is certainly encouraging. It says there's no urgency to panic about inflation. But that's not the same as saying there's justification for a pause. This is all pre-Katrina. There's enough pipeline pressures out there to say that a pause is not a slam dunk.