It as good as the +1% consensus. Only much better.
Utilization capacity continues to hum at a pace re-emphasizing the inflation threat the Fed has to handle amid what are increasingly political calls to ease the plight of over-lenders and over-borrowers. Then again self-interest is what makes the system so dominant.
Equity markets have made a small initial jump on the news; but perhaps the odds-making on the two Fed funds cuts over 60% of polled economists expect by year end has been complicated a shade: Mr Bernanke's goal is to prevent a lack of credit liquidity in the interbank market getting out of hand whilst keeping a grip on inflationary pressure - he is not in the business of saving from insolvency those who got greedy.
Or at least that is what his published utterances appears to say.