IF THEY HIKED ON NO INFLATION SHOULDN'T THEY CUT ON DEFLATION?:

What Inflation? (Scott Reeves, 09.19.06, Forbes)

U.S. prices at the wholesale level rose just 0.1% in August, underscoring easing inflationary pressure that will probably allow the Federal Reserve to leave its key overnight interest rate target unchanged at 5.25% when it meets on Wednesday. [...]

Excluding food and energy costs, the core Producer Price Index fell 0.4%, the largest drop since April 2003 and the first back-to-back drop since 2002. Last month, prices excluding food and energy fell 0.3%.