The consumer was in fairly good shape before Hurricane Katrina. Sales were strong virtually across the board.

They are likely to acknowledge the firmer data since the January meeting.

The strength across all labor-market indicators does suggest the Fed will likely raise rates in March.

The change from 'likely' to 'may be' takes away any strong signal they'll be raising rates.

Any way you slice it, the report suggests homebuilding is holding up quite well, and it will continue to be strong until we see a significant rise in mortgage rates. There's no evidence that a peak has been reached in the housing market.

Consumers are benefiting from the decline in retail gasoline prices and that should continue going forward. The job market does seem to be improving, or at least getting back into a more normal pace after the hurricanes.