Expectations had risen a bit too far, too fast, and were vulnerable to a correction; this is it.

The new Fed Chairman clearly expects to have to raise rates a bit further, but the extent of the tightening is dependent on the relative performance of the labor and housing markets.

There is no clear steer on policy in this speech; analysts with different views will read it in different ways.  But we think the Fed chairman knows recovery is here; he just wants to be a bit cautious -- and in both directions, which means no more easing,

Overall, the survey is still very strong, but we hoped for a bit better. A further decline next month would be a bit disconcerting, but there is no reason to expect that.

Overall, still quite strong, but a bit disconcerting nonetheless.

The details are close to our expectations, though consumers' spending, up 5.5%, was a bit stronger than we expected. Overall, solid domestic final demand, but the second quarter will be much weaker.

This report will leave the markets still pushing for a Fed ease...but perhaps with a bit less conviction, ... It is still not a done deal.