Market participants and economists are waiting to see if incoming data is sufficiently anemic to support aggressive Fed easing, or whether further rate cuts will be few and far between. The two measly indicators reported this week are not enough to tell us either way. The inflation news was considered bearish in the bond market, but beneath the surface actually does not point to a deteriorating position. Retail sales were in fact soggy, very near expectations. But the fourth quarter path could support another Fed rate reduction at the FOMC meeting come the end of January. Market players were hoping for a 50 basis point rate drop but are now coming to the realization that it will probably be only 25 basis points.