GlobeandMail.com - "Fed move will factor stagflation" (8-8-06)"

Add it up. Inflation plus a stagnating economy = stagflation."

"That's the equation facing U.S. Federal Reserve Board chairman Ben Bernanke today when the central bank's policy-setting arm decides whether or not to increase the federal funds rate for the 18th consecutive time, by one-quarter of a percentage point to 5.5 per cent."

"The chance the U.S. economy will slip into a recession has the markets anticipating the Fed will stop raising rates -- if not today then probably soon -- even though inflation pressures from higher energy costs to rising wages are hitting at the same time growth is slowing."