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. |
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. |