Now that the world economy is on firmer footing, investors have grown skeptical that rapid growth can coexist with tame inflation.
These are important numbers, particularly the one on employment costs. There's some concern about rising wage costs and rising prices and I think the market is really going to be on alert for that.
The Fed has a tough job on its hands.
The tale is a classic whodunit which seeks to unravel the mystery of who killed inflation. The only problem is that neither the body nor the murder weapon have been identified.
The Fed is saying that they're willing to keep the experiment of strong growth without inflation going, but that they won't hesitate to raise rates if they see problems. Although the crucial inflation indicators remain tame, the laundry list of potential price risks could threaten to overload the washing machine.
Wage pressures seem to have subsided. However, ongoing solid growth and indications of price acceleration in certain segments of the economy could leave chief sleuth Greenspan with plenty of gum on his shoe.