RATE INCREASE: Despite an expected economic slowdown brought about by Hurricane Katrina, the Federal Reserve is expected to raise interest rates again.
THE DEBATE: Those in favor of raising rates say inflation is a greater danger now than an economic slowdown, while those opposed say a slowdown would be worse.
KATRINA’S EFFECTS: The damage from the hurricane could reduce economic growth this year by as much as 1 percentage point. Spending is down due to high energy costs, and 400,000 jobs could be lost over the next four months.
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