The Federal Reserve’s monetary policy committee meets this week, and now comes the hard part for Chairman Jay Powell. It is already drawing criticism for a future recession, even though the central bank has barely tightened policy. We are about to find out if Mr. Powell has the fortitude to make up for the Fed’s big inflationary mistake.
The economic context of the Open Market Committee is rare and troubling. Inflation has soared while growth is slowing. The central bank is in the strange position of having to raise interest rates on Wednesday, while a day later the Commerce Department may report a second consecutive quarter of negative economic growth.