Inflation remains under control. We're concerned of inflationary pressures developing in the economy, but they're not here now. They may be here a few months down the road, but they're not here yet.

This (next appointment) could be the one who tips the balance. If Bush nominates a strong proponent of inflation targeting, it would be a signal they want (that).

We think the economy is going to stay strong through 2006.

What Greenspan did well is he steered through these crises and came out with minimal damage to the economy. Over an 18-year period, we had just two short recessions and low inflation. That combination says he's done a good job.

Yields are moving higher in a response to an economy that is bouncing back. Inflation is still under control, but it's in the upper end of the Fed's comfort range.

Inflation is going up and they have to do something to control it. The economy has been doing extremely well and the koruna will probably keep strengthening.