I don't see anything in the speech that is relevant to the near-term outlook.
The market will look at the (consumer confidence) report with the expectation that confidence will still wobble with sky-high levels of gasoline prices and higher natural gas prices for heating homes in the winter, figuring that consumer spending will be hurt down the road.
The PPI number had some pipeline pressure underneath the surface, but the market liked the fact that the core rate was up only 0.1 percent,
On the prices paid index, you're down 50 points from the highs in October, which the bond market clearly likes.
These are the kinds of things that raise eyebrows at the Fed. The implication that this January report has for wage inflation is bothersome to the market and the Fed.
It's an impressive number. It just gives you more confidence that you'll get 4.0 percent plus (increases) in the fourth quarter and you'll hang in there through the first.
Yet another survey of the economy is suggesting sustainable strength. Rates backed up a little because of this report, but you're treading water a bit because of payrolls data lurking on Friday.
A Fed move in late summer is a high probability bet right now.
That, combined with no job growth, makes it harder and harder for the Fed to pull the trigger in an election year.
It's certainly an impressive number, it's the lowest since early 2001.