While kids are prowling the streets tonight, the inflation bogeyman is prowling Bernanke. A rate cut, a falling dollar, and 3.9% growth?
This can't last forever.
Note that the US dollar is really doing wonders for American exports, up 12.7% year over year, which was about 1 percentage point of growth. Does anyone seriously believe as was stated in the linked report that it's all the free-trade agreements that the US has signed over the last year? I don't think so; the biggest of those was perhaps South Korea? Korea didn't suck up over a hundred billion in US exports.
Of course, maybe we've just conditioned everyone out of ever worrying about inflation.