While the Fed may not ease on September 18th, more tame inflation data this morning added to the mounting pile of evidence that such a move is feasible.  What would keep Bernanke on the sidelines?  Stronger economic data — which we also received this morning in the form of above consensus personal income and spending numbers.  Additionally, President Bush announced his intention to provide assistance to subprime mortgage holders through changes to the tax code.

August employment data due out next Friday will most likely provide the swing vote for the Fed’s actual decision later this month.  Either way, the recent actions of the Fed and now the President, gives confidence to the markets and paves the way for the move in growth stocks we anticipate.