This report is good news because it says the labor market is turning the corner, but it's still not strong enough to declare victory.
The report is certainly encouraging. It says there's no urgency to panic about inflation. But that's not the same as saying there's justification for a pause. This is all pre-Katrina. There's enough pipeline pressures out there to say that a pause is not a slam dunk.
Investors will be intently listening to see if he says anything that clears up what the future monetary path is likely to be,