Katrina will weigh on growth in second half of this year and we'll make most of that back first half of next year,

We've reached the point where employers need to start hiring again, but productivity growth will stay strong, so they can meet some of their increased demand with productivity improvements. That means hiring will be slow and the unemployment rate will stay at about 6 percent for another year and a half or so.

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).

This opens up an opportunity for Bush to put a further stamp on the Fed.

Most of the economies across the globe are doing well.