There is alot is opinion about the direction that the Fed will take in the coming months, between those that are currently looking for a fall and those who think the Fed will hold constant for the forseeable future. The something that is absent from the economic media isn't any notion that the Fed will actually be increasing the rate. The one thing is over they they continue to be data dependent and that many Fed govenors have said over and their preferred measure of inflation-core PCE is at the maximum level since April of 2005. That having been said, because housing prices are down, I think that if the NFP and ISM amounts come out a bit more powerful then expected, you still won't be hearing anything about a rate hike. At least this week.

What also seems to be obivious, is that the reduction in housing prices has trumped the elevated PCE. To put it differently, the Fed is accepting the current degree of PCE so long as the housing prices are down.

Also keep in mind, that there's really a demand for your own $ to devalue somewhat-the current account is becoming out of control. We are basically selling out nation to China-right today it is estimated that they are holding about 1 Trillion of their dollars. Our government needs China to float its' currency, but they are not going to do that right now-hence, the only means to get hold of things is by $ devaluation (making chinese goods more expensive). All I know is I can visit my local chinese .99 penny shop and get 2 double A batteries for .99 pennies, an 8 ounce container of hand soap for my own workplace bathroom for .99 pennies, etc.. So I guess for now, me and alot of other people are gont keep searching there and our $'s are gonna keep going to China .99 pennies at a time...