We also got a jobs data report today, and it was lukewarm. But companies are more interested in making earnings and shoring up an already tight expense load, so jobs are going to be the last thing to kick in. More importantly, given the fact that the Fed gave near-perfect testimony yesterday, I'd say that we'll get a retest of the June highs relatively soon.

I also believe that the Fed is navigating this situation extremely well. All this talk about the risk of rampant inflation seems absurd given the fact that just months ago we had massive deflationary risk and a global financial meltdown.

Frankly, first we need some velocity of money and for some of these government stimulus funds to flow. Only then will we have a chance of seeing an improving jobs picture in more than just a couple of sectors. Having some inflation should be a welcome thing.

Lastly, over the past decade or 2, I feel that many incredible economic advances -- and accompanying leaps in technology -- have been quelled due to overly aggressive Fed rate hikes. In fact, I could make a very strong case that every rate hike above 3% (during the last cycle) was unnecessary, and that those hikes contributed -- at least partially -- to the severity of the current doldrums.

Maybe it's high time we revisit the theory that any appreciable uptick in inflation requires a rate hike to control it -- which can spark recessions.

Bottom line: Don't bet on this excellent Fed chairman blindly repeating the mistakes of the past.