The November minutes were taken as a sign of an impending pause and I don't think the Fed wants to give that message. If the economy is still growing fast, they may have to raise rates above 5 percent.

This is a Fed that has demonstrated excellent crisis management skills. But by the time we come to November, the Fed should be able to act with a greater degree of confidence. A pause in November would mean a severe downgrade in the prospects for the economy while tightening in November would show that the effects of Hurricane Katrina were probably temporary.

I think the Fed keeps going as long as GDP growth stays between 3 percent and 4 percent. That would be not too hot to make them go faster or too cold to make them pause,

If the Fed were going to pause in response to Katrina, it probably would be in November and December,

There's now a possibility of a pause whereas last week I would have described the thought as lunacy. But this does not necessarily portend a pause, ... The Fed will be busy in the next two weeks to come up with as much hard information as to the size and duration of the hurricane effect.

There's now a possibility of a pause whereas last week I would have described the thought as lunacy. But this does not necessarily portend a pause. The Fed will be busy in the next two weeks to come up with as much hard information as to the size and duration of the hurricane effect.