Central Banks
Fed Caught Between Inflation and Bank Crisis
- Central bank confronts hike-or-pause choice amid turmoil
- Rate forecasts could shift — or be suspended altogether
This article is for subscribers only.
All eyes in the financial and economic world will be laser-focused Wednesday on the Federal Reserve as Chair Jerome Powell tries to balance his fight against inflation against a sudden banking crisis.
Powell and his colleagues began their meeting Tuesday with the outcome unusually unclear. While most economists expect a quarter-point interest-rate hike, some say policymakers should pause to shore up financial stability.