Goldilocks loves today's inflation number in the personal income and spending report. Both the headline and core PCE deflator were flat at 0.0 over the past three months. The headline number is -2.1 percent at an annual rate and the core is 1.8 percent at an annual rate.  

Two years of monetary restraint by the Fed has vanquished inflation.  That's also the bond market message.  The clock is ticking for the Fed to lower its target rate by one quarter of a percentage point.