The market's selling off because the economic growth we're seeing is starting to stir some fears of inflation, so people are going for gold.

It's as good as it gets. You've got low inflation, minimal wage pressure, great productivity, booming growth and strong demand.

High oil prices may raise inflation but longer-term it's negative for growth and that's how the Fed sees it.

Monetary tightening, a strong currency and tamer U.S. demand should spell slower economic growth ahead, calming inflation fears.

What Katrina has done is shift the economic focus from inflation to growth.

If anything, this confirms the Fed's bias towards inflation rather than worrying about a slow down in growth. The Fed seems to have no worries about growth, as least as far as manufacturing is measured by ISM.