Our own belief remains that while core inflation could well inch up in the coming months, it is unlikely to accelerate significantly.

The benign inflation data and the belief that the Fed may be closer to the end than had previously been thought has helped the market this week.

If firms need pricing power, they should be clamoring for the highest possible rates of inflation. Firms don't have pricing power, but they can still make money, and a lot of it.

They are a bit more sanguine about inflation than the market has been, and they've been trying to tell people that. It doesn't mean they have their head stuck in the sand. With the last sentence of their statement, they leave themselves plenty of flexibility.

It was 25 basis points, everyone knew that, and so there's virtually no stock market reaction,

It's mighty difficult the closer you get to the consumer to raise prices, and that remains the case. There is a big debate out there as to how long can this continue.