81.   Earlier, a report on the strength of the manufacturing economy gave conflicting signals on the prospects for higher inflation and interest rates.

82.   European bonds and stocks rose after the Bundesbank cut German interest rates, sparking cuts across the continent amid confidence economic growth can be revived without risking higher inflation.

83.   Even so, Greenspan said higher inflation would slow the economy and jeopardize the positive budget developments.

84.   Fast growth can lead to higher inflation rates that eat into the value of fixed-income investments like bonds.

85.   Even if the surge in commodity prices lasts, that may not translate into higher inflation in the modern economy.

86.   Federal Reserve policymakers, convinced that robust U.S. economic growth will translate into higher inflation, raised the overnight bank lending rate a quarter point.

87.   Few value managers dare to predict when their turnaround might come, but they say that higher inflation or a strengthening economy would be strong catalysts.

88.   Federal Reserve officials watch shipments and unfilled orders to see if production bottlenecks are developing that could threaten higher inflation.

89.   Fed policymakers watch employment costs for clues on whether wages are climbing, raising the risk of higher inflation and higher interest rates.

90.   Federal Reserve Gov. Susan Phillips said in an interview earlier this week that tame consumer prices could be temporary and that rising wages could still trigger higher inflation.