Really, everything you can point to is showing that you have inflation in check. Inflation is less of a concern, rising interest rates are less of a concern and I think sentiment in the market has turned around.

My concern is that what's happened here is that inflation is higher than the Fed anticipated. On top of that, the kind of tightening already imposed by the markets, in terms of lower equities and higher bond yields, is setting up weaker growth in 2005.

Some evidence has emerged that inflation is starting to pick up, and there's concern that the Fed's rate increases may not have been enough so far to keep that inflation contained, ... It suggests that we may see more aggressive rate hikes rather than the gradual baby steps we've seen.

We're seeing a little bit of upward pressure on inflation but it's not yet enough to spark a big concern in the market.

I think my concern about inflation is distinctly higher now

As far as the Fed goes, it really isn't inflation on the ground that's a concern, it's inflation down the road. For a very long time, they've offset that with global concerns, but there doesn't appear to be any more world crises to worry about.