The trend of the flattening of the yield curve will continue. The short- end yield is going up because growth is getting better.

A slump in growth will continue until rising U.S. demand triggers an export-led recovery in Asia, most likely by mid-2003.

We've had more growth in the last five years in this coastal region than we had in the previous 10 years.

If anything, this confirms the Fed's bias towards inflation rather than worrying about a slow down in growth. The Fed seems to have no worries about growth, as least as far as manufacturing is measured by ISM.

Historically, in the U.S. and in other countries, periods of rapid productivity growth have been periods of strong employment growth.

While the short-term growth outlook is somewhat weaker, the underlying economic fundamentals remain strong. This is not the time to abandon fiscal discipline in favor of large tax cuts. Maintaining a fiscal surplus helps keep interest rates attractive for investment.