Even before the hurricane hit, rising energy prices were having a dampening effect on the economy,

The problem is the combined effects of the disruptions from Katrina and Rita, plus the ripple effects in the economy from higher energy prices,

The U.K. tried to cool off the housing market and slow their economy a bit, and they're caught in a situation where the economy is slowing but inflation isn't mostly because of oil prices, ... It's a bit of a dilemma, and that's reflected in their split vote.

The higher energy costs will put a squeeze on both businesses and households. They're spending so much on energy - the households on gasoline, the airlines on jet fuel, for example - that they'll have to curtail elsewhere.

Because the economy is strong and job growth is strong, the consumer has not felt much pain, but that is likely to change in the next few months, ... I think we are headed for a period of economic weakness mostly related to the oil situation.

His academic work on inflation targeting will be of great comfort to many market analysts and investors who are beginning to fret about inflation,