What investors should realize is that the hostesses have been recruited to start removing the punch bowls from all Fed reception rooms and will soon be out full in force and ready to continue raising short-term rates well into 2003.

These [jobless] numbers confirm everything that came out in the Fed statement. Things are going to get worse before they get better on the unemployment rate front.

These numbers give the Fed license to cut rates as much as necessary.

Investors have become completely convinced that we need to see the housing canary buckle under a little bit. If the housing market softens, then investors will view that as the canary in the cave that indicates that central bankers will not have to be as aggressive.

Next week's producer price index or consumer price index could tip the Fed in favor of a June hike if they're on the upside.

With a fall in the yearly rise in average hourly earnings, both investors and policy-makers can avoid pushing the panic button for a little while longer. In other words, while a (May interest rate hike) remains all but assured, this report did little to nail further tightening beyond this stage.