[Rutles4Ever]

Dang, I wish I shared your optimism. I'm thinking oil prices + inflation + higher interest rates = economic slowdown this fall... Not very good timing, if you ask me... The only potential positive is that the heated up economy may create more jobs. But at the rate it's going, any trepidation in the marketplace can pull the rug out from under the recovery... Just being honest.

[mlbford2]

I was talking to my wife about this last night. I agree with you. We are baffled why inflation is not higher with oil and milk prices so high. Yes, milk. Going up .50cents a gallon. Milk will drive inflation just like oil. I'm curious what basket of goods the fed is measuring to get its lack stance on inflation. The next few months should be interesting.

[PhiKapMom]

Have to say one thing -- some of you posters who have signed on in the last year are the most negative posters we have on here. Good news is always met with negative comments. Unbelieveable.

This is fantastic news and some of you on here act like the end is coming!

Wake up and smell the roses and lose that negativity which is the mantra of the Clinton/Kerry/McAuliffe democRATs!

[mwl1]

Dang, I wish I shared your optimism. I'm thinking oil prices + inflation + higher interest rates = economic slowdown this fall.

No way. The momentum of this recovery will carry us into 2005 and well beyond. Oil and gasoline prices will start dropping by August and continue to head down into the fall.

The larger point: given that we have a $10 trillion economy, it takes longer to come out of a recession and longer to go into one than in the past. Your fears of the economy overheating and heading downward prior to the election are not grounded in reality. We're going to be fine.

The unemployment rate is the only economic barometer that can elect Kerry, and that is now working against him.

[Wyatt's Torch]

Higher interest rates are in reaction to the higher oil prices as a symptom of inflaiton. Coupled with the tightening of the money supply, this should reduce inflation overall. Greenspan, who I think overplayed the low interest rate hand which has lead to the skyrocketing commodities prices, has been playing the interest rate game such that he won't raise them until he's sure the economy can absorb them. The hihger rates have already been priced in. Problem is, if the rates remain too low and inflation continues to accelerate, then there will be expectations of even larger increases in rates.