Fed official says impact on U.S. may be short.(Hurricane Katrina)

Byline: Bob Fernandez

Sep. 1--Hurricane Katrina is slamming into the U.S. economy through higher gasoline and natural-gas prices that are likely to reduce economic growth by $50 billion to $75 billion, economists said yesterday.

But economic damage beyond the higher price of petroleum products is not likely to be widespread or severe, they said, although individual companies or industry sectors could encounter problems related to Katrina and its aftermath.

"There is little doubt that the weather damage to our oil industry could be substantial, and dislocations are likely in the short run," Anthony M. Santomero, president of the Philadelphia Federal Reserve, said yesterday in a …