Fed on a mission to slow economy

Rate hikes should curb energy-induced inflation

Interest rates at all maturities rose last week were crossing important divides Friday morning, pushed by the prospect of more Fed tightening ahead, perhaps a lot more.

Low-fee mortgages are still below 6 percent, but a deteriorating 10-year T-note suggests six-plus shortly.

Current and forward-looking economic data are garbled into uselessness by Katrina/Rita. In an economy as large as ours, there is no way to isolate the storms’ impact from the baseline of national economic activity.