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This morning’s Consumer Price Index was actually a lot higher than I expected it to be, and it's bearish for stocks. As soon as Obama gets back from his Hawaiian vacation, the attached chart will be on his desk.

Main Street consumer confidence continues to tank, despite falling gas prices and rising stocks. Unemployment is their main concern, and inflation is a close second. The Democrats know this ring tone.

The headline CPI reading of +5.6% year over year may very well be a lagging economic indicator (it was the highest monthly report since January of 1991), but that doesn't mean that Obama won't use it to his advantage. Bernanke is “data dependent”, remember?

KM