The key point is the stability and declining trend in core inflation. The central bank isn't going to conduct monetary policy based on agricultural prices.

What is most reassuring is that core inflation continued to come down and is very well behaved. I think the stability in core will help anchor inflation expectations despite the spike in agricultural prices.

The Fed has and must have a commitment to price stability. The uncertainties on the upside (for inflation) have only gotten bigger since Katrina slammed into the Gulf Coast,

The Fed has and must have a commitment to price stability, ... The uncertainties on the upside (for inflation) have only gotten bigger since Katrina slammed into the Gulf Coast.

The Fed has done the right things at the right times fighting inflation, keeping the economy going and providing stability.

Maintaining inflation stability is the central responsibility of the central bank. But we don't want to be in the situation of over-reacting and driving the economy down,