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