Clearly, the Fed sees what the market sees.  A lower dollar has the potential to increase inflation.  Oil is up.  Commodities are up.  Of course there is concern for inflation.  However, domestic growth is slow and risks domestically can be a problem if housing prices get hurt more. That should help inflation. 

The data today and over the last few days are worth keeping things on hold and watching.  If employment starts to weaken, credit crisis accelerates, international economies start to falter, housing continues to get much worse, then they will be inclined to be more aggressive.