Rate of interest resolution: What to anticipate from the Fed assembly

New York
CNN
 — 

The Federal Reserve and its chairman, Jerome Powell, are facing a legacy-defining moment as their two-day monetary policy meeting concludes on Wednesday.

The mission? Slay the inflation dragon without singeing the banking system.

Among the choices, the Fed could continue its aggressive rate-hike campaign to cool inflation that is running at triple the central bank’s target of 2%. It could take a time-out to assess how that campaign has strained the banking system. Or it could split the difference and raise rates by a quarter point to show its commitment to both the inflation fight and financial system stability. Instead of higher rates for longer, some economists are even penciling in rate cuts late this year if the banking crisis fuels a recession.

For Powell and Co., the stakes are high.

“I don’t think he should be chairman of the…

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