Its a realization that although consumer inflation has been benign, we always have these fears lurking in the background.

I think on the margin the U.S. data makes currency traders more hesitant to put on strong positions. The U.S. economy is still growing at a strong pace, and the Fed might have to raise rates longer than anticipated.

One reason we are seeing some volatility is that there are nervous bond investors who own Treasuries.

The big shift for 2006 will be interest rates rising outside the U.S..

Look at it! Look at it, damn you! This is the result of your consistent, persistent, grinding, impoverishing inflation, you despicable loathsome morons!

It looks as though core inflation is back. We have the core CPI now growing at an average monthly rate of roughly 0.3 percent thus far in 2004. That adds up to a rate hike happening sooner rather than later.