I think inflationary pressures are growing a little bit. In the long run, the Fed will be able to deal with those pressures. We may see a little longer period of uncertainty as we deal with that.
There's still some danger that inflation could pick up, and higher energy prices could feed into that. But overall, it does not look like substantial inflationary pressures are developing.
The core inflation number was the key number. I've been personally wondering and so has the market about the possibility that inflationary pressures are rising. ... However, this data point at least would seem to contradict that.