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Since then, however, soaring oil prices and food riots across the globe have raised fears that the world is entering an era of rising inflation, and people are adjusting their expectations and behavior as a result.

In light of that, the Fed now might not cut rates this week. If its rate-setting Federal Open Market Committee does cut its benchmark federal funds rate -- the rate that banks charge one another for overnight lending -- it's likely to be only a quarter-point, to 2 percent, not the aggressive cut that most analysts were projecting weeks ago.

Even if the Fed cuts the rate, it's likely to signal that it intends to pause a while before cutting rates again because inflation remains stubbornly high -- even though the U.S. economy appears to be stalled.

Inflation, the rise of prices across the economy, remains a threat at home and abroad. The biggest part rises from the seemingly unstoppable climb in oil prices. But the prices of everything from grains and dairy products to base metals and raw materials also are surging. That drives up the price of nearly everything we eat, heat, cool, drive or manufacture.

About 30,000 people are expected to fill the Qwest Center Omaha arena Saturday for the Omaha-based holding company's annual meeting. The question-and-answer period, when Berkshire's chairman and vice chairman spend more than five hours responding to nearly anything, is usually the highlight of the meeting.

Buffett and Munger will likely face questions about the credit crunch that has created turmoil in this economy, the new bond insurance business Berkshire launched, and who will run Berkshire after the 77-year-old Buffett is gone.

And a group representing American Indian tribes and commercial fishermen from California and Oregon will again try to pressure Buffett at the meeting to order the removal of four dams on the Klamath River owned by one of Berkshire's utilities so salmon can spawn again.

But for many people in the crowd, especially the ones who attend every year, the Berkshire meeting simply offers a chance to hear two master investors discuss their craft.

BP said it had completed the closure of the Forties Pipeline System by 6 a.m., when 1,200 workers at the Grangemouth refinery in central Scotland walked off the job. The pipeline brings in 700,000 barrels of oil a day from the North Sea to BP's Kinneil plant, which is powered from the Grangemouth site.

Energy industry group Oil & Gas U.K. said the strike, over pension issues, could cost $100 million a day in lost production.

The main effect of the walkout was likely to be felt by the British Treasury - which relies heavily on taxes from oil production - and at gas stations in Scotland, some of which limited purchases in anticipation of the strike.

The government urged motorists not to hoard fuel, saying there would be enough to go around. It wants to avoid a repeat of scenes in 2000 when motorists were forced to line up at gas stations as truckers angry at heavily taxed fuel brought Britain to a standstill by blockading refineries.

But the market wants to hear this week that the Fed is confident, too.

The central bank's policy makers meet Tuesday and Wednesday to decide whether to lower interest rates again, and to issue an updated assessment of the U.S. economy and financial system. Most investors believe the Fed will lower rates by another quarter percentage point but will also suggest they are gearing up for a pause.

"There's enough mixed signals out there that now's the time to put that forward," said Kurt Karl, chief U.S. economist at Swiss Re, referring to mediocre-but-not-horrific readings on the economy and corporate profits that have helped bring some stability to the stock market.

Already, the central bank has incrementally reduced the key federal funds rate by 3 percentage points since last summer, to 2.25 percent from 5.25 percent. On top of rate cuts, the Fed has been lending more money to banks, while the government is preparing to send out tax rebates.

The airline reconfigured Boeing 757s meant for 220 passengers with 48 seats that could extend into a fully flat bed. Flights served wine, champagne, cocktails and gourmet foods. There were individual DVD players, and helicopter rides to the airport were offered to some travelers.

The price for the New York to London flights, which it offered twice a day, ranged from $3,500 to $9,000 roundtrip.

The high-flying luxuries came to an end Sunday as Purchase, N.Y.-based Eos ceased operations after filing for bankruptcy protection, the latest casualty of a credit crunch and a money-losing airline industry that has been hit hard by high fuel prices.

There have been a handful of small carriers to file for Chapter 11 or go out of business in recent months. One of Eos' main rivals in the all-business-class niche, MAXjet Airways, stopped flying in December. At the time, analysts questioned the viability of all-business-class airlines.

The campaign is likely to intensify Monday as members of the Federal Reserve Board begin two days of public hearings on the proposed $4.1 billion stock deal.

The acquisition, which is expected to close in the third quarter, would make Charlotte, N.C.-based Bank of America the nation's largest mortgage lender in addition to the nation's largest consumer bank.

The Fed is required to consider whether the deal would harm consumers. It held its initial public hearing last week in Chicago.

In Los Angeles, four members of the Federal Reserve Board are scheduled to hear from officials with Bank of America and scores of speakers from state government, consumer and business groups, and labor unions, among others.