The dollar has benefited from the view that the Fed will raise interest rates at a more aggressive pace. Certainly, I think this week's economic numbers will support this view.

201

Overall, we're kind of in a holding pattern here, more than anything else. The dollar is displaying a bit of heavier tone.

196

The numbers are consistent with the view that the Fed raises rates again next week.

194

(The budget proposal) does lay the groundwork for more fiscal responsibility out of the White House but this still has to be approved by Congress. Seeing how this plays out on Capitol Hill will affect the dollar.

176

So far (there has been) no pass through of high energy prices into core inflation. What sticks out most is that the New York state manufacturing survey was spot on with forecasts and not (as) disastrous as some had expected. That is consistent with the view that the economic impact of Katrina will likely be limited and temporary.

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