OOOPS

You can see from the action of the bonds and the dollar today that the idea of the Fed blinking and not raising rates has reversed. Chicago Fed Pres helped that idea along with his midday comments where he voiced more concern over inflation. So it seems Greenspan will continue his mission to take away the punchbowl. I guess he wants to go out with his reputation as an inflation fighter intact. If they go ahead and raise rates, I think it will be the last time this year. Even the Treasury Secretary this morning acknowledged that the economy would slow. The political outcry that is already beginning will overwhelm the Fed's desire to raise rates if the economy fades.
A lot more news of higher spending today and higher costs. Higher transport costs from using alternate ports and methods of transportation and higher spending on everything from unemployment benefits surge to various relief expenditures. Not to mention lower tax revenues due to less people working and slowing economic activity.