The Producer Price Index came in at 1.3%, compared to analysts' estimates of .5%.  This is really significant.  It's showing that inflation is indeed NOT slowing down, which is what many people were expecting.

Over the last week or two, people were beginning to think the Fed would start cutting interest rates soon to combat a weaker economy and combat the credit crunch which is starting in the sub-prime market.  The biggest contradiction I see to this is the statments of various Fed Governors going on record saying that inflation is the number one concern of the Federal Reserve right now.

This means that if inflation is not curbed, which apparently it is not, the Fed is okay with slowing the economy right now in order to put the much bigger beast to rest in the future.  As the days begin to pass, it seems that the Goldilocks landing is becoming less likely, and we may be seeing three angry grizzly bears.