Economic figures were generally in line with expectations this week. President Bush invoked the Taft-Hartley act to get longshoremen back to work and stop a management lockout. The cooling off period is set to last for 80 days. The work stoppage will no doubt impact economic data for October. Most likely, industrial production, retail sales and the international trade balance will be dampened in October.

Last week, columnist and economist Paul Krugman suggested that fiscal policy be used to spur economic growth. This week, former Fed governor Janet Yellen testified before Congress and made a similar suggestion. She indicated that the Fed's ability to spur the economy at this point is limited. Yellen was also chair of the Council of Economic Advisors during the Clinton Administration. Her experience working in the executive branch of government as well as on the Fed board gives her a broader perspective of monetary and fiscal policy than most economic policymakers and makes her analysis doubly valuable.