Jim:
I could be wrong but I don't see any "wiggle room" for this Fed to raise rates, high CPI number or not. Where do I begin to list the issues hanging over the Fed:

1. Unemployment rate up 25% ytd.
2. Bankruptcies/Foreclosures mounting.
3. ARM resets are about to hit homeowners in March. A rate hike before then could result in even more foreclosures.
4. GDP numbers are expected weaken considerably from the 3.3% "fantasy" number reported last week.

In short, Bernanke has no choice but to stay the course although a case could be made that he really should be LOWERING rates now. A rate hike cycle now would push us into a Depression in my opinion.

REgards,
Chris M.