It's an excuse to consolidate recent losses, although it seems highly implausible that federal officials would want to signal their plans, through any channel.

Parry's comments hint that the Fed still views the neutral level of the federal-funds rate to be approximately two percentage points above the inflation rate,

I have spoken to Terry because I have been on the end of losses like this before. They need to get some troops back and they will, but they have shown some good spirit.

The question is -- and this is why the market hasn't reacted too negatively to the durable goods report -- is whether businesses ... will continue to spend given the risks to consumer spending posed by high energy prices.

If the Fed is to achieve its objective of slowing the economy, they must consider the risk that their inaction on rates could spur growth before the economy has had a chance to truly slow,

The Fed certainly recognizes the importance that the markets are placing on the housing market and could well use it as a means of sending strong signals.