I would pause until the full effects of Katrina are known.

However, higher oil prices are going to translate into higher prices for eveything else; thus, causing a jump in inflation. And we all know that inflation is Greenspan's bogeyman. Will this, in turn, force Greenspan to raise rates? Who knows.

My guess is that the fed will pause and review the new data before they raise the rates. 

They could always raise rates .50 @ the next meeting