This time, they want to keep rates low to fight deflation -- a demon that may have vanished already. They might be successful again, but something else might build up, some other unintended consequence, including some inflation.
The PPI just feeds the deflation talk that's run rampant in the past month or so, ... It's upsetting for someone who believes deflation is on the way. Even though there are qualifiers for the April data, that headline is dramatic enough to convince them.
But his deflation comment seemed to really change things -- he said that it is coming closer to our shores.