The Fed, for the time being, is likely to continue to focus on the weakness of the economy, rather than on prices.

The remarks are more consistent with keeping rates on hold this month. At the same time, there are references to downside risks which represent an implicit message that they are not going to be raising rates anytime soon.

PPI was very well behaved due to energy, though there was a rebound in car prices. Aside from that, the trend is soft in terms of prices. That confirms weakness in economic activity.

I think it was more of an excuse. Weakness in Asia just hurts a strong economy a little bit around the edges.

Greenspan's comments ... [seemed] to suggest that the risks are weighted toward continued weakness in the economy, but these numbers raise questions about that conclusion. Still, I'm not certain the Fed governors would be willing to disagree with their boss.

If one were looking for additional weakness in the economy, it's not going to come from housing. We are seeing the economy generate a fair amount of momentum.