The biggest reactor to the productivity numbers will be the Fed. Productivity has been the safety valve for inflation.

Ben has been very clear that controlling inflation is the primary long-term goal of the Fed. And he has the credibility to do that.

Inflation is the wild card for 2006, with rising oil prices, an increase in commodity prices, slow productivity gains and rising interest rates.

It's as good as it gets. You've got low inflation, minimal wage pressure, great productivity, booming growth and strong demand.

Anytime you get a report that shows growth and goes against inflation, as in the productivity report we saw today, the market's going to react well to that.

Few people thought that he would be that explicit. We're getting closer to the end of the Fed interest-rate hikes.