Data are pointing to very strong growth in the fourth quarter. The pessimistic viewpoint, which has seen its grip on reality slip to the last knuckle in the past few months, is now holding on by its fingernails.

Now when people start to put together the pieces, it sure looks like the damage done to the financial markets from deflation around the world and a Fed that's too tight is beginning to rear its ugly head.

Once we get beyond two or three percent deflation, we have problems because we can't drive interest rates low enough and we begin to have unanticipated drops in prices.

When we look at these numbers today, I don't think it's going to cause the Fed to move at all. Inflation is still low...the job market is growing moderately.

This is the best environment for not only employers but employees, because we're really getting down to the most efficient use of all resources in our economy.

The numbers we've seen over the past few months have to make them feel better about their stance in monetary policy. It will allow them to remove some of the pressure they feel to maybe raise rates, and in effect move toward lowering rates.