Layoffs continue to rise and job creation continues to slow,

Payroll employment for October will plunge sharply and unemployment will continue to rise, likely breaching 6 percent by early next year,

The (Fed) will continue to focus policy on reviving economic growth.

In an environment of slower growth, steady job creation, weaker productivity gains, and modestly rising inflation that we envision for 2005, the FOMC will continue to lift its target federal funds rate.

These data indicate that wholesale deliveries to retailers are falling quickly, responding to the slowing pace of retail sales. However, deliveries from manufacturers and imports have not slowed as sharply. Unless retail sales revive, wholesalers will continue to cut their orders from manufacturers and imports, maintaining the downward pressure on the factory sector.

These data continue to show that the housing market remains resilient in the face of rising interest rates. This resiliency will make it more difficult for the (Federal Open Market Committee) to slow the economy,