Dilemma for Fed chief: High inflation and a surging virus

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Not long ago, anticipation was high that Federal Reserve Chair Jerome Powell might begin to sketch out a plan this week for the Fed to start pulling back on its support for an economy that has been strengthening. That was before COVID-19 cases began accelerating across the country. Now, the decision of how the Fed should dial back its help for the economy has become a more complicated one. Yet in outlining his view of the economy and the threats it faces at a high-profile speech Friday, Powell may provide important clues to the timing of changes in the Fed’s ultra-low-interest rate policies.