Conditions have not changed in the past week. Indicators confirm that economic activity has moderated from the heady pace of a year ago. The inflation figures spooked markets, but special factors may have boosted the CPI. Fed policymakers still have their fingers on the pulse of the economy - which is a priority these days relative to inflationary potential. The current news still favors a Fed rate cut at the next FOMC meeting. It is too soon to tell whether the Fed will continue its new aggressive policy or revert to incremental moves.