The fact that inflation appears to be holding at 3 percent for now is a major factor.

Among these, the unemployment figures for August were lower than many expected, while inflation appeared to be under control.

As a result, she said, neither inflation nor recession has appeared to be a significant threat, and stock prices have continued to advance.

The economy is growing strongly, while inflation still appears in check.

But the same factors that are said to be involved in home run inflation appear to fuel the higher batting averages, too.

If inflation appears to be accelerating, the Fed might decide against any interest rate moves.

He chose instead to wait until the threatened inflation actually appeared.

Interest rates are headed higher, inflation appears to be on the rise and the violence in Iraq has intensified.

But inflation now appears to be moderating and economic growth slowing.

"I think inflation appears to be pretty well under control," he said.