There is nothing at this point to suggest that Fed officials will pause.
The key is the stock market reaction.
The Fed is still going to be on guard in terms of monitoring inflationary pressures, but this has to be good news today.
It suggests that the industrial production setback reported for June is unlikely to last and that production geared up the very next month.
We're back to expecting a rate cut on December 11. Meyer changed people's thinking by essentially saying there's no limit as to how low (the federal funds rate) could go and today we're getting an added boost from the (weak) stock trade.
The selling abated, prices stabilized and people decided the path of least resistance is up.
Cars seem to be pivotal in keeping the wheels of consumer spending turning and certainly this quarter is starting out with a thud.
Expectations of Fed action have gone though the roof. The market is looking for two 25-basis-point moves and one 50-basis-point move before the presidential election.
Stock losses are giving bonds some juice this morning; we're back to feeling that the economy is weak and that bonds are a buy here.
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