It's already been working to dampen demand and cut into purchasing power. The longer it stays here, the longer that impact will last.

If firms need pricing power, they should be clamoring for the highest possible rates of inflation. Firms don't have pricing power, but they can still make money, and a lot of it.

You have to look at these numbers over a few months. Coming in, we had several months of very substantial gains. The basic picture is that business spending is bottoming and showing some signs of improvement, but it's not really robust.

You have to look at these numbers over a few months. Coming in, we had several months of very substantial gains, ... The basic picture is that business spending is bottoming and showing some signs of improvement, but it's not really robust.

We've been waiting for something like this for a long time. But we need to resist the temptation to put too much weight on any one month's report -- probably the best thing to do is to average out the past few months; that gives a clearer picture.

I think what we're seeing is a gradual decline in the jobless claim trend from its peaks in the immediate aftermath of Sept. 11, ... It suggests the labor market is not strong, but it's bottoming, and that's consistent with the overall [economic] picture.