The prices paid is still way up there, inflation is still running a little hot, enough that the Fed will continue to raise interest rates.
When combined with the run-up in employee health-care costs, ... the inability to raise selling prices is the single most important reason that job growth has been lagging so much during this recovery.
As long as energy prices remain high, they're likely to move in baby steps. I just don't think it's a slam dunk that they raise rates in December.
Certainly they would like to stop at five (percent), and I don't think this number prevents them from doing that, but it is something that should raise some doubts.
They would like to raise rates, but right now, keeping rates a little too low would cause the least harm in the economy. If they raise rates after this weak employment report, people will be hollering. George Bush would be hollering the loudest.
I don't think there's much doubt the Fed will raise rates by a quarter point each of the next three meetings. Even a really strong report probably won't cause them to raise rates by a half-point.